Landfill Communities Fund Value: 2027 to 2028
Published 28 October 2026
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Who is likely to be affected
Landfill operators registered for Landfill Tax that make qualifying contributions to environmental bodies, including distributive environmental bodies, authorised under the Landfill Communities Fund scheme.
Environmental Bodies who receive contributions under the Landfill Communities Fund to fund community and environmental projects.
General description of the measure
To increase the cap on the amount of credit landfill operators may claim against their annual Landfill Tax liability when making qualifying contributions in respect to the Landfill Communities Fund, from 5.3% to 8.3%.
Policy objective
To ensure the Landfill Communities Fund continues to support local communities by funding community and environmental projects, while providing value for money for the taxpayer.
Background to the measure
The amount of credit in relation to the Landfill Tax liability that a landfill operator may be entitled to claim was last changed in 2017, where it was increased slightly. Since then, no changes have been made.
However, over time the amount of waste disposed of at landfill sites has decreased, resulting in a reduction of tax receipts. As a consequence, the value of the fund is projected to decrease.
Detailed proposal
Operative date
The measure will have effect on 1 April 2027. From this date the amount of credit landfill operators may claim against their annual Landfill Tax liability when making qualifying contributions in respect to the Landfill Communities Fund will increase.
Current law
Regulation 31(3) of The Landfill Tax Regulations 1996 (SI 1996/1527) prescribes the amount of credit as a percentage of the Landfill Tax liability that a landfill operator may be entitled to.
Proposed revisions
The amendment will apply to contributions made from 1 April 2027 and will change the maximum credit that a landfill site operator may claim against their annual Landfill Tax liability when making contributions in respect of the Landfill Communities Fund, increasing it from 5.3% to 8.3%.
Summary of impacts
Exchequer impact (£ million)
| 2026 to 2027 | 2027 to 2028 | 2028 to 2029 | 2029 to 2030 | 2030 to 2031 | 2031 to 2032 |
|---|---|---|---|---|---|
| — | -10 | -15 | -15 | -15 | -15 |
These figures are set out in Table 6.1 of Budget 2026 and have been certified by the Office for Budget Responsibility. More details can be found in the policy costings document published alongside Budget 2026.
Economic impact
This measure is not expected to have any significant macroeconomic impacts.
Impact on individuals, households and families
This measure is expected to have no impact on individuals, households or families as it only affects businesses.
Equalities impacts
This measure does not affect individuals, therefore it is not anticipated that there will be disproportionate impacts on any protected groups.
Administrative impact on business including civil society organisations
This measure is expected to have a negligible impact on an estimated 111 landfill operators, by increasing the cap on the amount of credit they may claim against their annual Landfill Tax liability when making qualifying contributions to environmental bodies in respect to the Landfill Communities Fund. One-off costs will include familiarisation with the change. There are expected to be no ongoing costs.
The measure is expected overall to have no impact on businesses’ experience of dealing with HMRC as it does not change any tax administration processes or obligations.
The measure is expected to impact civil society organisations by encouraging landfill operators to increase their contributions to environmental bodies, enabling a greater number of community and environmental projects to be supported by the fund.
Operational impact (£ million) (HMRC or other)
There is no impact on HMRC.
Other impacts
Other impacts have been considered and none have been identified.
Monitoring and evaluation
The measure will be monitored though the existing compliance programme for Landfill Tax and as part of the existing arrangements for monitoring the Landfill Communities Fund.
Further advice
If you have any questions about this change, contact Zameer Hussain by telephone on 0300 057 3420 or by email at zameer.hussain@hmrc.gov.uk.