What is the Landfill Communities Fund (LCF)?
The Scheme was introduced under the Landfill Tax Regulations in October 1996 as the Landfill Tax Credit Scheme. Under it, registered landfill site operators are able to make contributions of up to 6% of their landfill tax obligation to registered Environmental Bodies for projects that comply with one of the five categories listed below.
What is ENTRUST?
The LCF is regulated by ENTRUST and managed by H.M. Revenue and Customs. It is ENTRUST’s role to ensure that the LCF monies are received and spent by Environmental Bodies on projects within the governing Landfill Tax Regulations 1996. ENTRUST regulates the LCF in a number of ways including reviewing and enrolling each organisation before they receive landfill tax contributions; assessing each project for compliance with the Regulations before expenditure starts; undertaking audits to ensure organisations are acting compliantly within the Regulations; investigating allegations of breaches of the Regulations.
What is an Environmental Body?
The regulations state that an Environmental Body must be a not for profit organisation, such as a company limited by guarantee or a charity. LCF contributions may only be paid to registered Environmental Bodies. SWEET, PEC and SGEB are registered Environmental Bodies. PEC and SGEB are also charitable companies.
What is an Environmental Association?
Environmental Associations such as KCEA and TEA are voluntary committees set up to allocate funding to projects within the vicinity of a particular landfill site. They are completely independent of the landfill operator and work in partnership with SWEET, which ensures that all project compliance and reporting requirements are met.
Does my project qualify?
There are five types of projects specified under the Regulations:
A) Remediation of contaminated or polluted land
B) Reclamation or remediation of derelict land to bring it into use.
D) The provision, maintenance or improvement of a public park or other public amenity, open to the public for 104 days per year.
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.
E) The maintenance, repair or restoration of a building (or other structure) of historic or architectural interest open to the public for 104 days per year; or a place of worship.
How do I apply?
Although the participation of Waste Management Companies in the Landfill Communities Fund is voluntary, landfill operators are only able to reclaim 90% of their contributions from H.M. Revenue & Customs. To offset the ‘shortfall’, H.M.C. & R. has stated that a 10% contribution can be paid to landfill site operators by a third party, independent from the group receiving the grant. They have indicated that an Environmental Body may not make these contributions and neither can contractors to Environmental Bodies. This is to avoid possible cases of fraud.
In almost all instances, the contributing landfill company requires evidence that the TPC is in place before a grant offer is made. Generally, the project raises this money, sometimes from separate fund raising activities and at other times from match funding sources. The third party contribution must cover the total grant offered by the landfill company, inclusive of fees payable to the regulator and the managing environmental body.Applicants will need to complete the appropriate application form plus an access statement for those projects needing to demonstrate public access (Object D and Object E) Applicants should also submit copies of quotes for the proposed works and any other relevant information that enhances and supports the application form.
Prospective applicants can request forms by phone or email via the contact details below.
I’m not sure if my project is compliant – can I discuss it with someone?
Please contact a member of staff by telephone 0117 904 5858 or email email@example.com. Further guidance is available at www.entrust.org.uk
My project is underway but is not fully funded. Can I apply for a grant?
Retrospective funding for completed work will not be awarded. Projects must be registered with ENTRUST prior to any agreement on grant funding. In addition we aim to ensure that projects are fully funded before commencement and we aim to encourage high standards of project management and reporting.
What is the Third Party Contribution (TPC)?
Although the participation of LOs in the Landfill Communities Fund is voluntary, a contributing LO does not receive 100% tax relief on contributions given to Environmental Bodies. For every £100 given to the Scheme, the LO receives a £90 tax credit, therefore each contribution made to the LCF costs the LO 10% of the amount given. To offset the ‘shortfall’ and encourage LOs to contribute to the LCF, H.M. Revenue & Customs has stated that a contribution amounting to 10% of the total grant awarded can be paid to LOs by a Third Party, independent from the organisation receiving the grant. They have 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 Contributing Third Party payment cannot be derived from LCF monies or from any party who will derive a unique benefit from the project.
In almost all instances, the contributing landfill company requires evidence that the TPC is in place before a grant offer is made. Generally, the project raises this money, sometimes from separate fund raising activities and at other times from match funding sources. The TPC must be 10% of the total grant offered by the LO, inclusive of fees payable to the Regulator and the managing Environmental Body.
What is SEEDCO?
SEEDCO is a not-for-profit company set up in accordance with the Landfill Tax Regulations to receive funds from Third Party Contributors for forwarding to contributing Landfill Operators.