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Spring Budget 2020: New plastic packaging tax

The 2018 Budget announced a new tax on plastic packaging, with less than 30% recycled plastic to tackle single use plastic waste. The tax will take effect from April 2022. 

The new tax will apply to plastic packaging produced in, or imported into the UK. The government consulted on the design of the tax in 2019.  Following on from this, the government intends to publish draft legislation for consultation in 2020 which will set out the key features of the tax, such as:

  • The £200 per tonne tax rate for packing with less than 30% recycled plastic
  • The scope of the tax by definition of the type of product and recycles content
  • Exemption for producers and imports of small quantities of plastic packaging
  • Who will be liable to register with HMRC and pay the tax
  • How the tax will be collected, recovered and enforced

These changes will directly affect producers and importers of plastic packaging and will indirectly impact business needing plastic packaging to sell their products. As with any new tax, it will have cost, compliance and commercial implications for businesses.  

We can provide advice and support to help you assess the impact and requirements of the tax to help your business manage its cost and impact.

Read more on the Budget here.

About the author

Liam McKeevor

+44 (0)20 7556 1244
mckeevorl@buzzacott.co.uk
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The new tax will apply to plastic packaging produced in, or imported into the UK. The government consulted on the design of the tax in 2019.  Following on from this, the government intends to publish draft legislation for consultation in 2020 which will set out the key features of the tax, such as:

  • The £200 per tonne tax rate for packing with less than 30% recycled plastic
  • The scope of the tax by definition of the type of product and recycles content
  • Exemption for producers and imports of small quantities of plastic packaging
  • Who will be liable to register with HMRC and pay the tax
  • How the tax will be collected, recovered and enforced

These changes will directly affect producers and importers of plastic packaging and will indirectly impact business needing plastic packaging to sell their products. As with any new tax, it will have cost, compliance and commercial implications for businesses.  

We can provide advice and support to help you assess the impact and requirements of the tax to help your business manage its cost and impact.

Read more on the Budget here.

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