Scottish Landfill Tax credit ends on 1 April 2026

Scotland is switching off the landfill tax credit scheme for new contributions. Under the Scottish Landfill Tax (Administration) Amendment Regulations 2026, the entitlement to credit in regulation 27 of the 2015 rules stops on 1 April 2026. This statutory instrument was made on 13 January 2026, laid before the Scottish Parliament on 15 January 2026, and was signed at St Andrew’s House by Ivan McKee on behalf of the Scottish Ministers.

If you are new to this policy area, Scottish Landfill Tax is a charge on waste disposed to landfill in Scotland, introduced by the Landfill Tax (Scotland) Act 2014 and operating since 2015. The purpose is straightforward: make landfill the least attractive option and encourage reuse, recycling and recovery.

Until now, landfill operators registered for Scottish Landfill Tax could claim a tax credit when they made a voluntary payment to an approved body. In the legislation, that payment is a “qualifying contribution” and its conditions sit in regulation 28 of the 2015 Regulations. Approved bodies are organisations described in regulation 26 that use these funds on community or environmental projects, often near landfill sites. Think local green spaces, habitat work or improvements to public amenities.

What is changing is simple but significant: from 1 April 2026, regulation 27 (the rule that provided the entitlement to claim a credit) ceases to have effect. In plain terms, contributions made on or after that date will not attract a landfill tax credit in Scotland. What this means: the tax itself continues; it is the credit route for new contributions that is being ended.

There is a clear transitional rule. If a registered person makes a qualifying contribution to an approved body before 1 April 2026, the old credit rules still apply to that payment. The instrument expressly preserves regulation 27 for those pre‑April contributions. So earlier donations remain eligible for credit, while later donations do not. The wording is tight and date‑specific, which helps with planning and compliance.

For landfill operators, this change affects budgets and community investment plans. If you intend to support a project and claim a credit, the contribution must be received before 1 April 2026, and you should keep the usual evidence to support a claim under the 2015 Regulations. After the cut‑off, you may still donate, but it will be without a tax credit.

For approved bodies and community groups, expect timing conversations with partners. Projects that relied on operator donations incentivised by the credit may face a funding shift after April. It is worth mapping which pledges fall before the deadline and which would fall after, and documenting approvals and receipts with care. What this means: if your fundraising pitch depended on the tax credit, check the date on every pledge and agree next steps with contributors now.

For learners and young readers, this is a neat case study in how a government can change a tax mechanism using secondary legislation. Rather than rewriting the whole system, ministers turn off a single regulation and then save it for payments made before a fixed date. The short “note” at the end reminds readers it is not part of the law; it is there to summarise the change in everyday language.

Scope matters. This change applies to the Scottish regime only. Other parts of the UK run their own landfill tax and community funding rules. If you work across borders, always check the correct jurisdiction rather than assuming the Scottish position applies elsewhere.

For transparency, our source is Scottish Statutory Instrument 2026/8. The powers used come from sections 18, 20 and 41 of the Landfill Tax (Scotland) Act 2014. The definitions of “approved body”, “registered person” and “qualifying contribution” live in the 2015 Regulations, with regulation 28 previously amended by SSI 2017/139. These references are included so you can read the law for yourself and build confidence when interpreting official texts.