The Landfill Communities Fund (LCF) is an innovative tax credit scheme which 'offsets' some of the negative impacts of living in the vicinity of a landfill site for affected communities. Under the LCF, LOs are able to pay a proportion of their Landfill tax liability to not-for-profit organisations which deliver projects for the benefit of communities and the environment in the vicinity of a landfill site. In order to receive LCF funds from a LO these not for profit organisations must become enrolled with ENTRUST as Environmental Bodies (EBs).
LCF is an innovative tax credit scheme enabling operators of landfill sites to contribute money to organisations enrolled with ENTRUST as Environmental Bodies (EBs). EBs carry out projects that comply with the objectives (Objects) set out in The Landfill Tax Regulations 1996 (Regulations).
The Government introduced tax on landfill waste in 1996 to reduce the amount of land-filled waste and to promote more environmentally sustainable methods of waste management. The LCF is also a way for Landfill Operators (LOs) and EBs to work in partnership on projects that create significant environmental benefits, jobs and which improve the lives of communities living near landfill sites.
LOs are able to claim a credit (currently 5.7%) against their landfill tax liability. This is 90% of the contribution LOs make to EBs. They then either bear the remaining 10% themselves or can ask an independent third party (usually described as the Contributing Third Party) to make up the difference.
About Landfill Operators (LOs)
LOs are organisations which are licensed to run landfill sites. LOs may be large private companies, local authority-owned companies, local authorities or even sole traders.
The Landfill Tax Regulations 1996 govern the LCF. These Regulations have been amended over the years and a copy of the composite regulations can be seen in 'Tolley's Environmental Taxes Handbook' (ISBN 040698879X) which is available from libraries and bookshops. This can also be viewed on the Regulations page of their website.