Flying and Environmental Taxation No 2 - Climate Change Levy

In general the climate change levy (CCL) is imposed on numerous industries with the intention of inducing a reduction in carbon emissions by that industry.

Briefly, it works as follows:

• in the first year of the scheme an industry receives from the government an aggregate allocation of carbon emissions certificates (CEFs) - representing the industry's total allowable emissions for the period;
• for that year each business in the industry is allocated a portion of the industry's aggregate allocation - representing the business's total allowable emissions for the period; 
• if during that year a business needs to emit more than the allocation given to it, it must either a) buy CEFs from others in the industry, or b) become more energy efficient by say, investing in plant and machinery for improved energy efficiency.

This year air transport will become within the ambit of the CCL. An immediate response has been to raise passenger air fares for cover the CCL. A longer term strategy, if not already started, will be to find ways of avoiding the tax. I am still seeking examples but possibilities (to be confirmed) include:

• investing in lighter aircraft so that fuel consumption is reduced;
• investing in more efficient aero-engines as and when they become available;
• use exempt fuels (if any) (adapting or changing engines, if necessary).

For passengers....? Review airlines' strategies and seek out energy efficient carriers. See who is buying the best aircraft or aero-engines - I presume that as time passes their prices will reflect their ability to:

• save by flying faster;
• save on aero-fuels;
• save by selling-off their surplus CEFs! 

Flying and Environmental Taxation No 1 - Air Passenger Duty

As a general rule a governemnt endeavours to wider the tax base. In recent years environmental taxation has come to the fore a widening part of the UK tax base. This post briefly examines the nature of air passenger duty (APD). It is an important environmental or "green" tax concerning those flying to overseas destinations from the UK.

APD was introduced by the Finance Act 1994 (as amended) - see sections 28 to 44 and schedules 5A and 6. In addition a hotch-potch of statutory instruments in the form of regulations and orders help to bewilder the seeker of truth!

In essence, the tax applies according to the individual passenger's destination and the class of travel. IN effect there are a) four destination bands; and, b) two rates for each band.

The tax is not an insignificant cost on relatively long distance flights. At least three impacts may be identified:

• the passenger traffic is likely to be diverted to other modes of transport as prices increase;
• some destinations are no longer attractive for discretionary flying (tourists);
• avoidance may be attempted by seeking any lower or nil tax regimes - so flying from other countries.

The attached link is useful http://www.travel-rants.com/2011/11/30/air-passenger-duty/

Landfill Tax 4 - Innovatiions Arising - Recycling Roadside Sweepings

Now is the time of year when I go out and collect leaves with the intention of recycling them as leaf-mould for the garden and the allotment. It seems that a new innovation has been thought up!

Some of my leaves come from the gutter so  I am only a bit behind on this one! A waste collecting- processing-recyling company is collecting roadside sweepings (in fact doing the sweeping) but instead of putting it into composting "bins" (like me), they have a huge processing plant.

The bits and pieces of machinery in the plant extracts the heavy metals, etc and sells them on for industrial etc usage. Brilliant - in that it seems the extraction rates are more prolific than mining natural ores for someof the finings.

Maybe the recycling industry should try mining the old landfill sites for metals and other "treasure"...?

Environmental Taxation - What is it?

Was discussing environment, sustainability and the likes the other day and learned that at least one first degree course in environmental science and one masters degree course in wider aspects of the environement do not, it seems, touch environmental taxation.   I know that the nomenclature is relatively new - say 20 years or so - but the subject seems important enough for all graduates to get hooked on it!

What does "environmental taxation" mean? "Environmental tax" was defined in "The Glossaryof Property Terms" as:
      "An impost or charge which is designed to protect or fortuitously protect the environemnt, eg landfill tax, congetsion charge and climate change levy."

Of course such taxes as landfill tax should be taken in the context of the times. "Revenue generation" is perhaps a cynic's perspective of environmetal taxation but one needs to get behind the tax and any policies and complementary policy measures which might be linked to it. For instance, the landfill tax is accompanied by the following statutory measures;

• the Landfill Community Fund;
• landfill allowance trading scheme; and,
• variable charging and incentives scheme.

Other taxes or aspects of taxes which might be treated as being within environmental taxation include:

• community infrastructure levy (CIL);
• aspects of stamp duty;
• aspects of rating and council tax;
• aspects of most capital taxes, eg inheritance tax, capital gains tax;
• capital allowances for income taxation, ie on environmental capital of certain categories.

Landfill Tax 3 - Rates are a Rising - Employment Generation

Two things are certain in life - death and taxes. We are told that business would like certainty in taxation. Landfill tax is exemplar. We can be certain that landfill tax will continue to rise on its escalator. Last April saw the last rise and the government continues the aura of certainty - that there will be future hikes in the rate of Landfill Tax!

Are we benefiting? Yes, yes and yes! More employment could be forecast as new work opportunities come about. Examples include:

• increased rapidity in research projects as new recycling techniques and energy generation techniques look increasingly viable;



• more lecturing of the above in terms of an increasing knowledge base for: 1) the economic impact, 2) the engineering impact; 3) the facilities management impact (I could go on);



• more operational impact in the recycling industry and the energy industry (I could go on);



• larger professional groups in the above....etc.

I started my "career" in recycling at the age of 10 years. It is still a passion. Then, I collected paper for the local Saturday cinema club in Rochester. Told my Gran (Granny Parsons) of my ambition to win. "Leave it with me", she said. I gathered my comics, etc as the weeks rolled by. But I did not feel hopeful.

Come the day. Gran had said "Uncle Fred will pick you up." I walked into the cinema and the manager was greeting us children: he asked me "Where is your paper?" "Outside." "Bring it in. "Can't, come and see." From the cab of a borrowed lorry Uncle Fred asked the manager (now dumbfounded) "Where do you want the load delivered?" It ended up in Sittingbourne paper mills. I had won!

They were great prizes too!

Landfill Tax 2 - Moving the Goal Post! - Shared services an Anwer?

Our landfill waste disposers have got the message by now, namely "Recycling Pays"! It is less certain that Tom(s), Dick(s) and Harry(s) have yet digested all of the millions of messages the government, local authorities and others are sending to them. How much is each household paying for landfilling?


What can be done to help the citizen who wants to recycle more and more?


I reckon that nearly 100% of waste can be recycled if waste movers and other stakeholders in the industry could embrace all types of recyclable waste. It seems that every "take-away" rubbish council has a small number of prohibitions against certain items. Thus, locally for example I understand that tetra drinks containers which are recyclable are banned to the landfill site; not withstanding that they are non-landfill now. "What causes the "inertia" for tetra and similarly treated items?


One answer might to be a policy of a move to more shared services. With landfill tax destined to increase every year until 2020 (at least) - a moving goal post - much more needs to be done!

Landfill Tax - Waste from Contaminated Land -End of LRR (Update No 1 - 25 November 2011)

The date - 31 March 2012 - is creeping closer. It is the day for the end of the exemption from landfill tax for waste from registered contaminated land.

Those who still have exempt "status" have until 31 March 2012 to decontaminate their site(s). Known as land remediation relief (LRR), the exemption continues for four months to be a valuable set-off against corporation tax.

Some landowners and their professional advisors - accountants, estate managers, lawyers and surveyors - had best, perhaps, check the current landfill tax status of any contaminated land in the estate's holdings which is registered for LRR.

New sites have not been registerable since 30 November 2008. If LRR is already available, the execution of any plan of work for lifting the contaminated soil and taking it to a landfill site must be completed by the due date. After that date landfill tax may become chargeable.