When Centurion says it can help businesses managed their Environmental Tax concerns - what does that actually mean?

A recent Scottish case on a £99m Landfill Tax bill for a Waste Management business illustrates how any business involved in waste management, or indeed major civil engineering projects across the UK, needs to ensure they correctly identify where exemptions from Landfill Tax can correctly be applied. The case deals specifically with the landfill tax liability of material used by the taxpayer - Barr Environmental Ltd  - in the construction of above ground retaining walls to store waste at its landfill sites in Scotland. The business had argued that the waste material that it had applied to the construction of these retaining walls qualified for exemption from Landfill tax. The judgement of the First Tier Tribunal did not fall in their favour in this regard and the assessments which totalled over £99m were upheld.

Getting the interpretation wrong as to what sorts of activities can qualify for a tax relief is important in any type of tax but often we find that environmental taxes with their own specific nuances, can be often overlooked. It’s still a young tax regime in reality. With the attention focussed on the environment and the forthcoming COP26 Summit in Glasgow – it’s a pertinent reminder that taxes are used to influence a greener agenda in both personal behaviours and at a business level. Misunderstanding the environmental tax impact, including in waste management sectors, waste management by local councils or across the wider construction sector and civil engineering projects such as mining, quarries, port developments, or any major infrastructure projects, can be a costly affair.

If you advise or are a business engaging in these types of activities or sectors, then when we say we can help on environmental tax issues we mean we can review what you are planning – establish the scope of correctly applied reliefs, and ensure compliance with the tax rules to avoid the sorts of challenges and assessments illustrated in this case.

Contact our Environmental Tax specialist Mike Trotman  

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