- Plastic packaging tax is not charged on components that contain at least 30% recycled plastic.
- HMRC published a consultation on whether a ‘mass balance approach’ should be allowed for calculating the amount of recycled plastic.
- A mass balance approach is a model that tracks materials through a complex value supply chain and enables recycled or sustainable inputs which are mixed with virgin material during the process to be allocated to particular outputs.
- Finance (No. 2) Bill 2024-26 includes legislation to allow the use of a mass balance approach.
- Timing: the consultation closed on 10 October 2023. The government issued a summary of responses on 30 October 2024, stating that a mass balance approach will be allowed. The measure will take effect from 1 April 2027.
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