Plastic Packaging Tax 2021 (UK)

A new tax will apply to plastic packaging manufactured in, or imported into the UK, that does not contain at least 30% recycled plastic. Plastic packaging is packaging that is predominantly plastic by weight.

It will not apply to any plastic packaging which contains at least 30% recycled plastic, or any packaging which is not predominantly plastic by weight.

Imported plastic packaging will be liable to the tax, whether the packaging is unfilled or filled.

Manufacturers and importers of less than 10 tonnes of plastic packaging per year will be exempt.

The tax will take effect on 1 April 2022.

Legislation will be introduced in Finance Bill 2021 to establish the Plastic Packaging Tax.

The key features of the tax, will include:

• £200 per tonne tax rate for packaging with less than 30% recycled plastic

• a registration threshold of 10 tonnes of plastic packaging manufactured in or imported into the UK per annum

• the scope of the tax by definition of the type of taxable product and recycled content

• the exemption for manufacturers and importers of small quantities of plastic packaging

• who will be liable to pay the tax and need to register with HMRC

• how the tax will be collected, recovered and enforced

• how the tax will be relieved on exports

The relevant extracts of the Finance Bill 2021 when enacted, will be added to EHS Legislation Registers and Checklists.

The policy paper is here.

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