Part 3Administration
Adjustment of contracts
I127Adjustment of contracts
1
This section applies where—
a
material undergoes a landfill disposal,
b
a payment falls to be made under a disposal contract relating to the material, and
c
after the making of the contract there is a change in the tax chargeable on the landfill disposal.
2
In such a case, the amount of any payment mentioned in subsection (1)(b) is to be adjusted, unless the disposal contract otherwise provides, so as to reflect the tax chargeable on the landfill disposal.
3
For the purposes of this section a disposal contract relating to material is a contract providing for the disposal of the material, and it is immaterial—
a
when the contract was made,
b
whether the contract also provides for other matters,
c
whether the contract provides for a method of disposal and (if it does) what method it provides for.
4
The reference in subsection (1) to a change in the tax chargeable is a reference to a change—
a
to or from no tax being chargeable, or
b
in the amount of tax chargeable.