TC09644 ****** - [2025] UKFTT 01121 (TC)

Landfill Tax was introduced by Part III of FA 1996 (sections 39 to 71).

Section 40 FA 1996 sets out the circumstances in which the charge to Landfill Tax arises:

“40 Charge to Tax

(1)

Tax shall be charged on a taxable disposal made in England or Northern Ireland.

(2)

A taxable disposal takes place where material is disposed of and either—

(a)

the disposal is made at a landfill site (see subsection (4)), or

(b)

the disposal requires a permit or licence mentioned in subsection (4) but is not made at a landfill site.

(3)

For this purpose a disposal is made at a landfill site if the land on or under which it is made constitutes or falls within land which is a landfill site at the time of the disposal.

(4)

Land is a landfill site at a given time if at that time—

(a)

a permit under regulations made under—

(i)

section 2 of the Pollution Prevention and Control Act 1999, or

(ii)

Article 4 of the Environment (Northern Ireland) Order 2002 (S.I. 2002/3153 (N.I. 7)),

is in force in relation to the land and authorises deposits or disposals in or on the land,

(b)

a waste management licence issued under Part 2 of the Waste and Contaminated Land (Northern Ireland) Order 1997 (S.I. 1997/2778 (N.I. 19)) (waste on land) is in force in relation to the land and authorises deposits in or on the land, or

(c)

a licence under any provision for the time being having effect in Northern Ireland and corresponding to section 35 of the Environmental Protection Act 1990 (waste management licences) is in force in relation to the land and authorises disposals in or on the land.” [emphasis added]

It is common ground that the relevant land was not a landfill site. Therefore s 40(2)(b) FA 1996 is in issue.

Section 40A FA 1996 addresses when a “disposal” occurs, and relevantly stated:

“40A Disposals of material

(1)

For the purposes of this Part, there is a disposal of material if—

(a)

material is disposed of on the surface of land or on a structure set into the surface, or

(b)

material is disposed of under the surface of land.

(2)

For the purposes of subsection (1)(a) and (b) it does not matter whether the material is placed in a container before it is disposed of.

(3)

For the purposes of subsection (1)(b) it does not matter whether the material—

(a)

is covered after it is disposed of, or

(b)

is disposed of in a cavity (such as a cavern or mine).

(4)

If material is disposed of on the surface of land or on a structure set into the surface with a view to the material being covered, the disposal is to be treated as made when the material is disposed of and not when it is covered.

Section 41 FA 1996 determines the person who is liable to pay Landfill Tax on taxable disposals and relevantly stated:

“41 Liability to pay tax

…

(3)

A person is liable to pay tax charged on a taxable disposal not made at a landfill site if the person—

(a)

makes the disposal, or

(b)

knowingly causes or knowingly permits the disposal to be made.

(4)

Every such person is jointly and severally liable to pay the tax charged.

(5)

In the case of a taxable disposal not made at a landfill site, a person within subsection (6) or (7) is taken for the purposes of this Part to be a person who knowingly causes or knowingly permits the disposal to be made, unless it is shown to the satisfaction of the Commissioners that the person did not do so.

(6)

A person is within this subsection if, before the time of the disposal of the material in question, the person—

(a)

took any action with a view to the disposal of the material,

(b)

was party to a contract for the sale of the material, or

(c)

facilitated the transport or storage of the material.

(7)

A person is within this subsection if at the time of the disposal the person—

(a)

is the owner, or a lessee or occupier, of the land at which the disposal is made,

(b)

controls, or is able to control, a vehicle or trailer from which the disposal is made, or

(c)

is an officer of a body corporate or unincorporated association that is within subsection (3)(a) or (3)(b).” [emphasis added]