Contents: Landfill Tax Credit Scheme Project Criteria TEA Matching Funds
Applicant Contribution How to apply Contacts Download these guidelines
These guidelines will answer questions about the Landfill Tax Credit Scheme, its administration and how to make a valid application.
Landfill Tax Credit Scheme (LTCS):
The Scheme was introduced as part of the Landfill Tax Regulations in October 1996. Under it, registered landfill site operators are able to make voluntary contributions for projects, which meet the qualification criteria listed below. In return, landfill site operators receive tax credits for these contributions.
Thornhaugh Environmental Association (TEA) will allocate grants from landfill tax credits arising from the landfill site at Thornhaugh owned by Augean South plc.
SWEET, an enrolled environmental body, administers the Thornhaugh Environmental Association.
The Regulations allow for projects that deliver:
A) Prevention or remediation of contaminated or polluted land. Feasibility studies into the extent or nature of the pollution or contamination are allowable.
B) Reclamation or remediation of disused or derelict land to bring it into social, economic or environmental use.
D) The provision, maintenance or improvement of a public park or other public amenity, provided it is within 10 miles of the landfill site and is not operated with a view to profit and open to the public for at least 84 days per year. The facility must be a genuine public amenity with open access or availability for public use.
DA) The conservation or promotion of biological diversity through the provision, conservation restoration or enhancement of a natural habitat, or the maintenance or recovery of a species in its natural habitat, on land or in water, provided the site is within 10 miles of the landfill site and is not operated with a view to profit.
E) The maintenance, repair or restoration of a building (or other structure) of historic or architectural interest; or a place of worship, provided it is within 10 miles of the landfill site and is open to the public for at least 84 days per year and is not operated with a view to profit.
NB: TEA will look more favourably on projects within areas affected by the landfill site and where projects deliver amenities beneficial to residents and the environment in the vicinity of the landfill site. However applications up to 10 miles from the landfill site can be considered upon their merits and hence the reason for setting a wide catchment area.
TEA, representing the local community of Thornhaugh, decides which projects to allocate funds to, and how much.
All projects receiving funding under the LTCS need to be registered with the regulator, ENTRUST, before they can receive any grant funding. The administrator (SWEET) will do this once the decision has been taken to offer a grant by TEA. This process can take between 5 to 6 weeks, and all projects are advised NOT to start their projects until notified that the project has been confirmed. TEA will not pay for work already completed.
Once the project has been allocated a number by ENTRUST, all projects receiving funding will be asked to complete a schedule of work, which will detail what will be done and when funding will be required. Invoices, or copies, will need to be sent prior to payment. Payment can be either to the contractor direct or to the project.
This type of funding is extremely flexible and can be used as matched funding for grants coming from the public sector (e.g. lottery or EU or other public sector source).
The Fund, when allocated to an accepted project, can be treated by the project's owners as privately raised monies. Privately raised monies can be used to lever additional funding from other organisations which will be specific to each project type.
e.g. a church restoration project or a local pond environmental project will attract funding opportunities from different organisations. SWEET can provide advice for applicants on suitable organisations who may provide funding support.
Applicants requesting funding need to be mindful that TEA will expect any allocations for a project to be used to attract matching funding and are therefore unlikely to readily allocate the entire project cost.
What about the third party contribution (TPC)?
11.364% of the required funding is needed to secure it!!
Although the participation of Waste Management Companies in the Landfill Communities Fund is voluntary, landfill operators are only able to reclaim 90% of 6.7% of their tax liability from H.M. Revenue & Customs. To offset the ‘shortfall’ and encourage landfill companies to contribute to the Fund, H.M.R. & C. has stated that this `shortfall’ can be paid to landfill site operators by a third party, independent from the group receiving the grant. The Third Party Contributor may be the Parish or District Council, a `Friends’ group, an individual donor or a private business. Alternatively, the project may raise the contribution through specific fund raising events or from grants from other organisations. H.M.R.& C. has indicated that Environmental Bodies may not make these contributions and neither can contractors to Environmental Bodies. This is to avoid possible cases of fraud.
The Third Party Contribution (TPC) represents 10% of the total grant offered by the landfill company, inclusive of fees payable to the regulator, ENTRUST, and the managing environmental body, which in this case is SWEET.
Therefore, if a project were offered a grant of £10,000, the landfill operator would earmark a grant of £11,364 and, once the TPC was secured, the total grant would be distributed as,
£10,000 Project works (88%)
£ 1,136 Admin fees to Environmental Body (10%)
£ 228 Admin fees to ENTRUST (2%)
In this example, the project would have to seek a TPC of £1,136.40 to secure the total grant of £11,364.
To simplify, the amount to raise for the TPC is 11.364% of your project funding requirement (i.e. £10,000 * 11.364% = £1,136.40).
TPCs are processed through a company called Seed Co. in a manner that complies with ENTRUST’s requirements. For further details about this part of the scheme or its operation, please don’t hesitate to contact the office.
The application form can be downloaded from this website.
TEA has an application pack, which is available from the address and website below or from the TEA website at www.t-e-a.org.uk.
In addition to the application and supplementary information, please enclose a fuller description of your project, limiting it to one side of A4.
Where the total cost of the work is over £5,000, three estimates will be required. Similarly, if planning permission or other consents are required, we will need to see copies of these before proceeding. It is also important to state what your relationship is to the owners of the property, if other than yourselves. If the site of the project has a postal code or you know the grid reference, please complete that on the application.
All applications for work totalling £35,000 or more, we require the following information.
§ Planning permission
§ Copies of letters confirming funding secured
§ Management plan for project once it is active
§ Management plan during the building phase
§ Copy of project costs, and future operational/running costs
§ Evidence of community consultation, with letters of support from user groups
§ List of charges
§ Schedule of opening times, and advertising of these (include contact details of booking or letting person)
§ List of targeted user groups.
§ When appropriate, either tender summary document or estimates for the work to be done.
If additional information is required, we will contact you.
Should you have any queries regarding any aspect of the LTCS and/or the application, please do not hesitate to contact Alison Southern at the number below.
Should you have any queries regarding any aspect of the LTCS and/or the application, please do not hesitate to contact Alison Southern of SWEET at the number below.
SWEET-UK, Victoria House, 51 Victoria Street, Bristol, BS1 6AD
Tel: 0117 904 5875 / 58 Fax: 0117 904 6006