Landfill tax reform
ICAEW has responded (ICAEW Representation 57/25) to the government’s consultation on the reform of landfill tax. Although ICAEW agrees in principle with the proposed move to a single rate of landfill tax by 2030, ICAEW is concerned about the potential impacts of the policy and recommends that the government undertakes a comprehensive impact assessment before any changes are made.
ICAEW has encouraged the government to ensure that any reforms to landfill tax in England and Northern Ireland are co-ordinated with the devolved administrations in Scotland and Wales, and to complement tax reform with investment in recycling infrastructure, market development for secondary materials, and a fully operational digital waste tracking service.
Potential changes to the soft drinks industry levy
In April 2025, the government published a consultation focusing on targeted changes to the thresholds for, and the exemptions from the soft drinks industry levy (SDIL). In its response to the consultation (ICAEW Representation 56/25), ICAEW has encouraged the government to take a broader, more strategic approach to improving public health outcomes.
ICAEW recommends that, to maintain industry confidence and encourage continued reformulation of products, any future changes to the SDIL are developed with clear strategic intent, underpinned by a comprehensive review of its long-term effectiveness and behavioural impacts.
New guidance on vaping products duty
HMRC has published guidance to help business that make, or intend to make vaping products in the UK prepare for the introduction of vaping products duty (VPD) and the vaping duty stamps scheme (VDSS).
From:
- 1 April 2026, businesses within scope of the rules must apply to HMRC for approval for VPD and VDSS;
- 1 October 2026, businesses must pay VPD on vaping products and attach a vaping duty stamp on all retail packaging. A business that has not been approved for VPD and VDSS cannot lawfully produce vaping products in the UK from this date; and
- 1 April 2027, all vaping products outside of duty suspension in the UK must have a vaping duty stamp attached.
Tax Faculty
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