# The Landfill Tax (Wales) (Consequential and Transitional Provisions) Order 2018, Note: Explanatory note


(This note is not part of the Order)
This Order makes consequential and transitional arrangements in relation to the devolution of landfill tax to Wales. Specifically, it makes amendments to the Landfill Tax Regulations 1996 (S.I. 1996/1527) (“LFTR 1996”) to reflect the fact that landfill tax will no longer be charged in Wales with effect from the day on which sections 18 and 19 of the Wales Act 2014 (c. 29) come into force (the “commencement date”). The amendments made by this Order will come into force on the commencement date.
Sections 51 and 53 of the Finance Act 1996 (c. 8) together with Part 7 of LFTR 1996 provide that a person liable to pay landfill tax (“the taxable person”) is entitled to credit where that person pays a sum to an environmental body (an “approved body”) and that body meets specified objectives (“approved objects”).
The effect of the amendments made to LFTR 1996 by article 2 of this Order is to provide that, following devolution of landfill tax to Wales, the taxable person shall only be entitled to credit where the objects of the approved body to whom the sum is paid involve work carried out wholly or primarily in England or Northern Ireland (landfill tax was devolved to Scotland in 2015).
Article 3 establishes a transitional regime where, for a period of 2 years from the commencement date, the amendments made by article 2 will not have effect. This is in 2 situations: where sums have been paid to an approved body prior to the commencement date and are spent during the 2 year transitional period; and when sums are not spent within the transitional period, but are retained in certain circumstances. The latter will apply in respect of sums held to meet the running costs of an approved body, including on the cessation of its operations, under various conditions.
Article 3 also modifies the effect of regulation 36 of LFTR 1996 for the purposes of payments falling within the transitional regime, so that Her Majesty’s Revenue and Customs can require the repayment of credit from a taxable person in cases where they are not satisfied that the approved body to whom it was paid will use it for an approved purpose.
A tax impact and information note covering this instrument was published on 7th December 2017 and is available on the gov.uk website at https://www.gov.uk/government/publications/devolution-of-landfill-tax-to-wales-and-the-2-year-transitional-period-for-the-landfill-communities-fund/devolution-of-landfill-tax-to-wales-and-the-2-year-transitional-period-for-the-landfill-communities-fund. It remains an accurate summary of the impacts that result from this instrument.

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Source: https://www.legislation.gov.uk/uksi/2018/243/note (the official version)
Page: https://openlegislation.uk/landfill-tax-wales-consequential-and-transitional-provisions-order-2018/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.