Chancellor confirms introduction of recycled content tax in April 2022

11 MARCH 2020

The following has been sent by HMRC in relation to the £200/tonne recycled content tax announced by the Chancellor in today's budget and due to start in April 2022:

Good Afternoon,       

Earlier today the Chancellor announced in the Budget some key policy details and a further consultation on the Plastic Packaging Tax ahead of its introduction in April 2022. We are writing to update you on the announcement as we believe the tax may affect you or you may be interested in sharing your views on the announcement and detail in the consultation.? 

The Chancellor announced that the rate of the tax will be £200 per tonne for plastic packaging that contains less than 30% recycled plastic and that there will be a 10-tonne annual de minimis under which businesses won’t be required to pay the tax. Following the consultation in 2019, this Budget also announces that the tax will be extended to the importation of filled plastic packaging, to maintain the competitiveness of domestic manufacturers and the effectiveness of the tax in increasing use of recycled plastic. Please find further information on the announcement here. 

The government has launched a consultation running for 10 weeks until 20 May. Please find the consultation and how to respond here. 

We are running a webinar on 2 April where we will take attendees through the consultation, including how to respond to the consultation and how you can engage with HMRC if you wish to discuss any specific matters regarding your organisation. We will be in touch with further information about the webinar in due course.  

Kind Regards,

Yewei Wang

Excise & Environmental Taxes Policy Design Team | HM Revenue & Customs |