Landfill Tax Credits
Environmental Body
BEAT is enrolled as an EB (Environmental Body) and thus is eligible to receive qualifying contributions through the Landfill Tax Credit Scheme (LTCS) from landfill operators which can be used to fund environmental improvements for the benefit of the community (see below).
For a potential project to be enrolled with ENTRUST it must fit the criteria of one or more of the approved Objects set out in the Landfill tax regulations.
LTCS
The increase in domestic and industrial waste being produced led HM Government to introduce a tax system which would encourage consumers and companies to produce less waste and to recover value from the waste produced.
Introduced in October 1996, the Landfill Tax Credit Scheme (LTCS) allows landfill operators to claim a credit of up to 6.8% of their tax liability to HM Customs and Excise (HMCE) if they make qualifying contributions to Environmental Bodies (EBs).
The regulator of the fund is ENTRUST, a not-for-profit body in the private sector. Established through the Finance Act 1996, it has the mandate to approve and enroll EBs, which are then eligible to receive qualifying contributions.
Each EB can work within a set of approved Objects, criteria set out in the Landfill Regulations 1996. The current Objects are summarised below, but further information can be found on the LTCS website (www.ltcs.org.uk).
Object A:
Projects that involve reclaiming land, the use of which has been prevented by some previous activity;
Object B:
Projects that reduce or prevent pollution on land
Object C/ CC
Closed as of 1st April 2003
Object D:
Projects that provide or maintain public amenities or parks within 10 miles of a landfill site;
Object DA: Delivery of biodiversity conservation for UK species' habitats:
Object E: Projects to restore or repair buildings for religious worship, or of architectural or historical interest within 10 miles of a landfill site:
Object F: Projects that fund the cost of administrative, financial or other similar services, supplied to other enrolled environmental bodies.
Third Party Contributions
When the landfill operator makes a qualifying contribution to an EB it can only claim a tax credit of 90% of the contribution made; up to a maximum of 6.8% of the total tax liability. The remaining 10% is paid by the operator without any tax credit, but the operator can be indemnified by an independent Contributing Third Party (CTP).
The CTP can be PLC, Community Groups and/or individuals and can come from the private, public, voluntary sector.
However, the indemnity must be given by an independent third party, not be an EB, a company corporately associated with an EB or a contractor to an EB.
The indemnity must also:-
Be paid by the third party directly to the landfill operator (not through the EB) and not benefit the CTP unless that benefit is widely shared with others;
Be notified to HM Customs and Excise giving the name of the CTP and the date and the amount of the payment; and must not pass through the EB accounts.
In Practice
An example of how the LTCS might work in practice
Doug & Phil Holes, a landfill operator in Bradford has a landfill tax liability of £200,000 with a tax liability of 93.2% which must be paid to HMCE= £186,400.
Doug & Phil Holes can obtain relief for up to the remaining 6.8% of the tax liability = £13,600, if qualifying contributions are made to EBs to be spent on the approved objects.
But Doug & Phil Holes can only set 90% of the value of their qualifying contributions against the tax liability. Therefore, the operator must make qualifying contributions of at least £15112 in order to remit the whole of the £13,600 tax liability. Therefore, Doug & Phil Holes must pay the 10% balance of £1512 themselves. But they can be indemnified by a third party which has an interest in ensuring that the whole qualifying contribution is received by EBs.
If the qualifying contributions made to the EB by the landfill operator total only £5,000 then £4,500 of the tax liability is remitted. The operator therefore has to pay a further £2,300 to HMCE.
BEAT is regularly audited by ENTRUST to ensure best practices in the control and management of the charity. The BEAT team is proud to have worked together with partner organisations in the Public, Private and Voluntary Sector to secure funding for projects which benefit the wider community.
Below is a list of the 100 projects we have registered with ENTRUST, with links where applicable.
Projects CAT FUNDING
Great Horton Methodist Church d
Paradise Greens d
Minimisation of waste to landfills c
Internet-based waste minimization c
Household recycling scheme c
Wildlife and Organic Cultivation Project d
Community allotments project c
Bell Chapel Cemetery- refurbishment d
Headley Farm Hedges d
The secret garden project d
Urban Forest d
ustainable waste management in SME's c
Make Manywells Safe d
Restoration of Miles Rough Pond d
elected Small Sites Tree Planting Initiative d
Mosque & Community Centre d
Ilkley Cemetery Chapels e
Queens Road 'B' Allotments d
Low Ash First School d
t John's Church Ben Rhydding e
Royds Compost Bin Promotion c
Orchard Trail d
Bradford The Crescent e
New Bangladeshi Porishad Community Centre d
Cullingworth Juniors Football Club d
A composting strategy for Bradford c
Black Mountain Millennium Green d
treet Clean Project c
Growing for All d
Grow-A-Lot d
Forest of Bradford Phase 2 d
Eccleshill United Reform Church- e
Royds Community Association d
Keighley Tarn Redevelopment d
Heaton Woods Trust Phase 2 d
City Farm Infrastructure Project d
Youthbank d
Jacobs Wood d
Eccleshill Horticultural Society c
Greengates Allotments d
West Lane Baptist Church - Organ Refurb e
t Johns Cullingworth e
Millat E Islamia e
Cliffe Castle Lodge e
Research into Compost Application on Sports Pitches c
Windhill Community Furniture Store c
Renovations to Church Tower e
Waste Adventure Kits c
Canterbury Centre d
Bradford Nature for People d
Bradford Millennium Way d
Bradford Keighley Disabled Peoples Centre d
Flying Slug Programme c
Bradford Moor Tenants Residents Association d
Ilkley Quakers d
Recycle North c
Oxenhope Millennium Green d
Designer Solvents for Green Chemistry b
Village Hall Timber Cladding d
Blackhills Scout Camp d
Allerton Ridgeway Millennium Green d
Bradford Urban Forest Phase 3 d
Woodland Visions d
Bradford Value added Trash c
Addingham Fly Tip d
Islamic Cultural & Education Association d
Work to Fringes of Water Area of Reserve d
Bradford The Pit a
Bradford Playspace repaint scheme c
Enviro-nappies (Bradford) c
Waste Awareness Campaign - Phase 1 c
Furniture Project c
Real Recycling for Communities (Phase 1) c
Oxenhope Community Composting Project c
Waste Audit c
Khidmat Centre: Keep It Clean c
Newlands Recycling and Environmental Project d
Keighley and Worth Valley Railway d
Bradford Community Orchard Project d
Ride the Right Track d
The Crescent Gates e
The Cellar Garden Project c
Community Recycling Centre c
Waste Forum c
Addingham Play Scheme d
Waste Awareness c
Recycling Directory c
Forest of Bradford - Phase 4 d
Real Nappy Campaign c
Good Neighbour Furniture Reuse Project cc
Oakworth Skate Park Feasibility d
Park side Park d
outh Bradford Living Street d
Lees Methodist Church: Community Hall e
Grange Interlink d
The Windhill Forward Project d
Wrose Brow d
Bolton Woods d
Holden Hall Community Garden d
If you have any ideas for a project which fulfills one or more of the Objects of ENTRUST, please do not hesitate to get in touch with Shaun O’Hare or Emma Hill
LINKS
www.entrust.org.uk
www.ltcs.org.uk
www.biffaward.org
www.sitatrust.org.uk
www.wren.org.uk
www.yorventure.org.uk