B1.1.1 Financial Instruments continued


Landfill Tax

Landfill tax is an additional charge that is added to all landfill disposal charges.

There are two rates for landfill tax:

  • Standard rate: £86.10 per tonne (2017/2018). From the 1st April 2018 it will be £88.95 per tonne.
  • Lower rate for inactive waste, such as rocks and soil: £2.70 per tonne. From the 1st April 2017 it will be £2.80 per tonne.


It is designed to encourage businesses to produce less waste and to use alternative forms of waste management.


Aggregates Levy

The Aggregates Levy is an environmental tax on sand, gravel and rock that is dug from the ground or dredged from the sea in UK waters.

Quarry operators must pay a tax of £2.00 per tonne of sand, gravel or rock. Importers of these materials must also pay the tax once they are used commercially. All must register with HM Revenue & Customs (HMRC). [This was due to increase to £2.10 in 2012, but this has been delayed long-term]

The aim is to address the environmental costs associated with aggregates extraction not already covered by regulation and to encourage the use of alternative sources such as recycled materials.

In Northern Ireland operators who join the Scheme are entitled to a reduction of 80% in the Levy, providing they sign a legal agreement undertaking to carry out environmental improvements at their sites on an incremental basis. This was introduced, with European Union (EU) Approval, to overcome some implementation issues the area faced.