November 5, 2021
UK Plastic Packaging Tax | Legislation in UK Budget Finance Bill and consultation on new regulations
The United Kingdom (UK) Finance (No.2) Bill 2021-22, which was published on 4 November 2021, includes amendments to the primary legislation for the Plastic Packaging Tax (PPT) which is being introduced from 1 April 2022. Also on 4 November 2021, the UK tax authorities, Her Majesty's Revenue and Customs (HMRC) published a consultation on the draft PPT (General) Regulations 2021. HMRC is inviting views on the technical application of the regulations by 1 December 2021.
Amendments to PPT legislation
The changes are being made to ensure that the tax works as intended, that HMRC has the appropriate framework to administer the tax and that the UK complies with international agreements. Changes relating to Clause 83 and Schedule 11 of the Finance (No.2) Bill may be found here, and the details of the related policy paper may be found here.
Plastic Packaging Tax (General) Regulations 2021 and consultation
The PPT (General) regulations 2021 aim to ensure that the tax operates as intended from an administrative perspective, as well set out the meaning of "substantial modification," which determines when a plastic packaging component is finished and becomes chargeable for the tax. The regulation includes:
The consultation closes at 11:45pm on 1 December 2021 and responses can be sent to email@example.com.
Many businesses that may fall within the new PPT regime are currently reviewing supply chains and the liability of the plastic packaging they manufacture or import to ensure readiness from 1 April 2022. Businesses will welcome the publication of technical details within the regulation and the opportunity to feed back on the tax ahead of its implementation.
For additional information with respect to this Alert, please contact the following:
Ernst & Young LLP (United Kingdom), London