Landfill Communities Fund - FAQs
1. What is the Landfill Communities Fund?
The Landfill Communities Fund is a source of money for some organisations to carry out certain types of environmental projects. The government allows some of the landfill tax it levies on operators of landfill sites to be used to benefit communities and the environment. Landfill operators can contribute up to 6.5% of their landfill tax liability to environmental bodies in return for a tax credit.
2. Who can apply for landfill tax money?
This depends on which of two funding routes you choose.
Money directly from a landfill operator:
- If your organisation plans to receive landfill tax money this way, your organisation must meet criteria set out in the landfill tax regulations. These are outlined under question 8.
Money from an environmental body that distributes landfill tax money:
- If your organisation plans to receive landfill tax money this way, it must meet the criteria specified by the distributive environmental body.
3. What types of projects can be funded?
Projects must fall within one of these categories, called “objects” in the regulations:
- Object A – activities to reclaim, remediate or otherwise bring land back into social, environmental or economic use. The proposed use must have been prevented or restricted by an activity which has now ceased. If the land was polluted, the polluter of the land must not benefit from theproject.
- Object B – activities to reduce, mitigate or prevent pollution on land where the pollution has been caused by an activity which has now ceased. The polluter of the land must not benefit from the project.
- Object D – providing and maintaining public amenities and parks. Projects in this category must be located within the vicinity (usually within 10 miles) of a landfill site owned or operated by any person who pays landfill tax. The amenity must be open to the public, and not operated with a view to profit.
- Object E – restoring and repairing buildings and structures that are for religious worship or of architectural or historical interest. This includes work to places of worship for all faiths, ancient monuments and listed buildings. Projects in this category must be located within the vicinity (usually within 10 miles) of a landfill site owned or operated by any person who pays landfill tax. The building or structure must be open to the public, and not operated with a view to profit.
- Object F – the provision of administrative, financial or other similar services to environmental bodies enrolled with ENTRUST.
4. How do we get money for a project?
If you have a project that fits one of the objects described above, there are two main routes to get money through the scheme:
- From landfill operators directly - you might be able to find a landfill operator who will give landfill tax money directly to your organisation. While many landfill operators take part in the LTCS, not all do. Not all landfill operators are potential sources of funding for your work. The only way to find out is to contact them and ask. A list of operators can be obtained from HM Customs and Excise, or on 0845 010 9000. Landfill operators have to be registered with Customs to take part in the scheme. If you plan to receive money directly from a landfill operator, you will need to enrol your organisation as an environmental body with ENTRUST.
- Through a distributive environmental body (D-EB) – D-EBs help others to access the landfill tax credit scheme. Since distributive environmental bodies handle the majority of landfill operator contributions, this avenue is well worth pursuing.
To help you find these organisations, a searchable database of distributive environmental bodies has been compiled by ENTRUST. Your local ENTRUST area manager will also be able to guide you towards distributive environmental bodies in your area.
5. How much money could we get?
This is up to the landfill operator or distributive environmental body. It could be part or all of your project costs.
6. Can landfill tax money count as match funding?
Yes. If you have applied for money from other sources that specify you must find matching or private sector funds, your landfill tax money can be counted. This applies whether the landfill tax money came through a landfill operator or a distributive environmental body.
7. Do I need to enrol as an environmental body with ENTRUST to take part in the scheme?
If you plan to receive money directly from a landfill operator, you need to apply to ENTRUST to enrol as an environmental body. It costs £100 to apply to enrol. It makes sense to have a landfill operator’s support, at least in principle, before you apply to enrol because this fee is not refundable. If your funding comes through a distributive environmental body, you may not need to enrol as an environmental body. This will depend on the policy of your distributive environmental body, who will advise whether your organisation needs to enrol.
8. What types of organisations can enrol as environmental bodies?
To be enrolled by ENTRUST as an environmental body, your organisation must be a not-for-profit corporate body (e.g. a company limited by guarantee), trust or unincorporated association (like a friendly society or charity). It must have a written governing document. This might be a memorandum and articles of association, trust deed or constitution. It must include:
- one or more objects for the organisation that are the same or similar to one or more objects in the landfill tax regulations
- clauses precluding the organisation from: distributing profit or spending its money to benefit those who donate money to it through the scheme
- details of voting procedures and the quorum for meetings of the organisation
The organisation must not be controlled by representatives of:
- a local authority
- a body corporate controlled by one or more local authorities
- a registered landfill operator or by people involved with an environmental body whose enrolment has been compulsorily revoked by ENTRUST
9. What does enrolling as an environmental body mean in practice?
It means your organisation will:
- Pay an initial £100 application fee and the current admin fee of two per cent on any landfill tax money you receive directly from a landfill operator
- Be asked to register any projects you wish to carry out using landfill tax money with ENTRUST
- Be responsible for ensuring those projects comply with the landfill tax regulations
- Have to make regular returns to ENTRUST giving information about project expenditure and landfill tax income
- Keep specified records and make available on request details of your expenditure of landfill tax money