Policy paper

Landfill Tax: removal of exemption for stabilisers added to dredgings when sent to landfill

This measure will remove the Landfill Tax exemption for materials added to dredged material as stabilisers before disposal.

• From: HM Revenue & Customs
• Published: 13 July 2026

Documents

Landfill Tax: removal of exemption for stabilisers added to dredgings sent to landfill

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Draft legislation

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Draft legislation (accessible version)

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Explanatory note

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Details

Legislation will be introduced in Finance Bill 2026 to amend section 43 of FA96 to limit the exemption from Landfill Tax to dredged material only.

As a result of this change, only dredged material will remain exempt from Landfill Tax. Materials used to stabilise dredgings, such as air pollution control residues (APCr), will be subject to Landfill Tax at the relevant rate.

HMRC will consult with those affected by this measure on the draft legislation and how the new processes to administer it will work. Details on how this will work when finalised will be set out in Excise Notice LFT1 — a general guide to Landfill Tax. 

This measure will have effect from 1 April 2027.

Comments on the draft legislation and administration of the change are welcome by 7 September 2026. Send any comments to michael.lyttle@hmrc.gov.uk or telephone: 03000 585637 to discuss.

Published 13 July 2026