November 2008 Issue 6

Landfill Tax Exemption

5 Steps to Avoid Major Cost on Landfill Tax Exemption, but hurry…….

Nothing lasts forever. If you have a project with a site where contaminated material is likely to go to a landfill in the next three years the ability to apply for a Landfill Tax Exemption on Contaminated Soil will finish on 30th November this year.

You must act before the end of November 2008 to save potentially thousands of pounds

1. What’s happening?

Landfill Tax Exemption on contaminated soil will end on 30th November 2008. For developers and contractors this means that you will be paying a tax of £32 per tonne, from December 2008, rising to £48 per tonne by March 2012. This will be on top of landfill charges that you are already paying now.

But there is a way around this if you act now

2. How does this affect You?

Currently remediation of brownfield sites attracts tax relief on the contaminated soils removed to allow for re-development of the site. This means that every time that you remove contaminated material from site you do not have to pay the tax of £32 per tonne. Moving volumes of contaminated material is already a high cost for developers but as you can see, an additional cost of £32 per tonne, rising to £48 per tonne will put more pressure on costs and profitability.

3. What can be done?

There is a way around this issue, but you must act fast.

In a lot of cases it is possible to register your site now so you get an extension of this exemption until 31st March 2012.

In order to register exemption for your site and to avoid a £32 per tonne tax on all landfill contaminated material (this tax is increasing to £48/tonne 2012) you must complete the exemption for your site before 30th November. This will exclude you from this tax for all contaminated material going to landfill until 31st March 2012. But remember, you will still be paying normal landfill charges.

• Firstly register the site before 30th November 2008 to receive the benefit of the Landfill Tax Exemption until 31st march 2012.
• Then submit an assessment of the likely volumes of contaminated material requiring removal.

Full survey reports are not required but will require submitting within a relatively short period of time after registering.

4. What can Paul Waite Associates do for you?

We can quickly register your site to the Customs providing that you have a realistic assessment of volumes likely to leave site, with some supporting information/justification of volumes.

We then need to follow up this initial registration with more detailed proposals for the site. For instance the type of development, proposed levels potential contaminants and volumes etc.

This will protect your position going forward, but you need to Act Now. If you do not register your site, you will pay this extra tax in December 2008 on top of the landfill charges you are already paying.

5. The Benefits for you:-

• Projected saving on sites not yet begun.

• Savings on projected landfill costs.

• Experienced engineers liaising with the Environment agency.

• Securing funding for the developments as the Environmental Risk is understood.

• All abnormals accounted for with respect to foundations, drainage, retaining walls and contamination.

We can bring all of these benefits to your development by embracing up to date techniques that combine a practical and a buildable approach.

For further information or assistance please contact Jon Duxbury on: 01535 633350 or jond@pwaite.co.uk