December 20, 2021
UK issues updated guidance and regulations on Plastic Packaging Tax
The United Kingdom (UK) is introducing a new Plastic Packaging Tax (PPT) with effect from 1 April 2022. The UK tax administration, Her Majesty’s Revenue and Customs (HMRC) has issued updated guidance and regulations relating to the scope and operation of the new tax.
PPT guidance: new information published
HMRC has published further updates to the main PPT guidance on GOV.UK. These updates include further information on:
HMRC has indicated that further updates will be added to the guidance in due course and that it will communicate when these updates are available.
PPT regulations update
HMRC has also updated two regulations relating to PPT:
Plastic Packaging Tax (Descriptions of Products) Regulations 2021
Earlier this year, HMRC ran a technical consultation on a draft version of The Plastic Packaging Tax (Descriptions of Products) Regulations 2021. These regulations remove three categories of products from the meaning of a plastic packaging component and add a new category of products. Following consultation feedback, HMRC has refined some of the legislation wording, to provide greater clarity on what plastic packaging is subject to the tax. This updated legislation was laid in the UK Parliament on 13 December 2021. The updated legislation and Explanatory Memorandum are available online at https://www.legislation.gov.uk/uksi/2021/1417/contents/made.
Plastic Packaging Tax (General) Regulations 2022
The recent technical consultation on The Plastic Packaging Tax (General) Regulations 2022, which covers the tax’s administration technical details closed on 1 December 2021. HMRC is in the process of analyzing the feedback received. Once finalized, the legislation will be laid before the UK Parliament in the new year.
HMRC PPT webinar recordings
HMRC recently conducted a series of webinars on PPT. Recordings of both the “Introduction to Plastic Packaging Tax” and “Plastic Packaging Tax – Administration and technical aspects” sessions are available on GOV.UK at https://www.gov.uk/guidance/help-and-support-for-agents#plastic-packaging-tax.
For additional information with respect to this Alert, please contact the following:
Ernst & Young LLP (United Kingdom), London