Finance (No. 2) Act 2023

Environmental taxes U.K.

327 Rates of landfill tax U.K.

(1) Section 42 of FA 1996 (amount of landfill tax) is amended as follows.

(2) In subsection (1)(a) (standard rate), for “£98.60” substitute “£102.10”.

(3) In subsection (2) (reduced rate for certain disposals), in the words after paragraph (b)—

(a) for “£98.60” substitute “£102.10”, and

(b) for “£3.15” substitute “£3.25”.

(4) The amendments made by this section have effect in relation to disposals made (or treated as made) on or after 1 April 2023.

328 Rates of climate change levy U.K.

(1) Paragraph 42 of Schedule 6 to FA 2000 (climate change levy: amount payable by way of levy) is amended as follows.

(2) In sub-paragraph (1), for the table substitute—

“TABLE

Taxable commodity supplied	Rate at which levy payable if supply is not a reduced-rate supply
Electricity	£0.00775 per kilowatt hour
Gas supplied by a gas utility or any gas supplied in a gaseous state that is of a kind supplied by a gas utility	£0.00775 per kilowatt hour
Any petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state	£0.02175 per kilogram
Any other taxable commodity	£0.06064 per kilogram”

(3) In sub-paragraph (1)(c) (reduced-rate supplies in respect of any taxable commodity other than electricity or petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state), for “12” substitute “11”.

(4) In consequence of the amendment made by subsection (3), in the definition of “r” in the Notes to paragraph 2 of Schedule 1 to the Climate Change Levy (General) Regulations 2001 (S.I. 2001/838), for “0.88” substitute “0.89”.

(5) The amendments made by this section have effect in relation to supplies treated as taking place on or after 1 April 2024.

329 Rate of plastic packaging tax U.K.

(1) In section 45(1) of FA 2021 (rate of plastic packaging tax), for “£200” substitute “£210.82”.

(2) The amendment made by this section has effect in relation to packaging components produced in, or imported into, the United Kingdom on or after 1 April 2023.

330 Aggregates levy: exemptions and exploitation U.K.

(1) Part 2 of FA 2001 (aggregates levy) is amended as follows.

(2) In section 17 (meanings of “aggregate” and “taxable aggregate”)—

(a) in subsection (3)—

(i) omit paragraphs (b), (d) and (da);

(ii) omit the “or” at the end of paragraph (e);

(iii) after paragraph (f) insert “; or

(g) it consists wholly of aggregate won by being removed from the ground on the site of any or any proposed structure, or the site of any or any proposed infrastructure relating to transportation or utilities, in the course of excavations lawfully carried out—

(i) in connection with, and necessary for, the construction, modification, maintenance or improvement of the structure or infrastructure, and

(ii) not for the purpose of extracting that aggregate.”;

(b) in subsection (4) omit paragraph (e);

(c) in subsection (7) omit the definition of “highway”.

(3) In section 19 (commercial exploitation)—

(a) in subsection (3), in paragraph (e), for “site from which it was won” substitute “original site by virtue of it being used for a purpose connected with winning aggregate or other minerals from the site”;

(b) after subsection (3A) insert—

“(3B) For the purposes of subsection (3)(e), in relation to a quantity of aggregate, “the original site” means the site from which it was won.”;

(c) for subsection (4) substitute—

“(4) Subsection (4A) applies where, at the time when any aggregate is won from any site, a person (“P”) is in occupation for relevant purposes of—

(a) that site, or

(b) that site and other land.

(4A) Where this subsection applies, so long as the site mentioned in subsection (4), or that site and the other land, continue to be occupied by P for relevant purposes, subsection (3)(e) has effect as if—

(a) (where relevant) the reference to the land at the original site included the other land, and

(b) the words “by virtue of it being used for a purpose connected with winning aggregate or other minerals from the site” were omitted.

(4B) For the purposes of subsections (4) and (4A) relevant purposes are—

(a) the purposes of the carrying on of any agricultural business, or

(b) the purposes of the carrying on of any forestry business or otherwise for the purposes of forestry.”

(4) In consequence of the amendments made by subsection (2), in the Aggregates Levy (Registration and Miscellaneous Provisions) Regulations 2001 (S.I. 2001/ 4027), in regulation 3 (unconditional exemption from registration), in paragraph (a)—

(a) in sub-paragraph (i), for “(b), (c), (d) or (da)” substitute “(c) or (g)”;

(b) in sub-paragraph (ii), for “(c), (d) or (e)” substitute “(c) or (d)”.

(5) The amendments made by this section have effect in relation to aggregate won on or after 1 October 2023.