Circumstances giving rise to entitlement to credit
14.—(1) A person (“the claimant”) is entitled to customer insolvency credit in respect of a taxable disposal if the following requirements are met.
Requirement 1
The disposal has been made at an authorised landfill site.
Requirement 2
The claimant—
(a)was registered as the operator of the site at the time of the disposal, and
(b)made the disposal or permitted the disposal to be made.
Requirement 3
The disposal was made for consideration in money for another person (“the customer”) to whom the claimant—
(a)is not connected, and
(b)was not connected at the time of the disposal.
Requirement 4
The claimant has issued a landfill invoice to the customer in respect of the taxable disposal—
(a)within the period of 14 days beginning with the day on which the disposal was made, or
(b)within any longer period specified in a notice issued to the claimant under section 41(6) of LDTA.
Requirement 5
The claimant—
(a)has accounted for the amount of tax chargeable in respect of the disposal in a tax return, and
(b)has paid the amount of tax payable under section 42(1) or (1A) of LDTA in respect of the return.
Requirement 6
The customer—
(a)has become insolvent within the period of 12 months beginning with the date on which the landfill invoice was issued, and
(b)has failed to pay the claimant the whole or part of the consideration due in respect of the disposal.
Requirement 7
The claimant has been unable to recover the unpaid consideration, despite having taken reasonable steps to do so.
Requirement 8
The claimant—
(a)has set off against the amount of unpaid consideration any debt owed by the claimant to the customer which may be set off against that amount, and
(b)has reduced the amount of unpaid consideration by the value of any enforceable security that the claimant holds in relation to the customer,
but an amount of consideration remains outstanding in respect of the disposal.
(2) Despite paragraph (1), a person is not entitled to customer insolvency credit in respect of a taxable disposal—
(a)if the person has previously benefited from any amount of customer insolvency credit in respect of the disposal, or
(b)if a landfill invoice has been issued in respect of the disposal after the end of the later of the periods mentioned in requirement 4.
(3) In this Part, references to outstanding consideration, in relation to a taxable disposal, are references to the amount of consideration mentioned at the end of requirement 8.