Finance Act 2021

Interpretation of main terms etc U.K.

47 Chargeable plastic packaging components U.K.

(1) A plastic packaging component is chargeable if—

(a) the proportion of recycled plastic in the component, when measured by weight, is less than 30% of the total amount of plastic in the component, and

(b) it is finished.

(2) A plastic packaging component is taken to fall within subsection (1)(a) unless it is shown that it does not.

(3) For the purposes of this Part, a component is “finished” if it has undergone—

(a) its last substantial modification, or

(b) in the case of a component that undergoes a substantial modification when it is packed or filled, its last substantial modification before being packed or filled,

even if waste or surplus material remains attached to it.

(4) Accordingly, for the purposes of this Part, waste or surplus material that remains attached to a component after its last substantial modification is not to be treated as part of the component.

(5) The Commissioners may by regulations make provision about—

(a) the methodology to be used, or the information or evidence required, to satisfy them that a plastic packaging component does not fall within subsection (1)(a);

(b) the meaning of “substantial modification”.

Modifications etc. (not altering text)

C1 Pt. 2 modified (1.4.2022) by The Plastic Packaging Tax (Descriptions of Products) Regulations 2021 (S.I. 2021/1417), regs. 1, 3-5

Commencement Information

I1 S. 47 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

I2 S. 47 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4

48 Meaning of “plastic packaging component” U.K.

(1) A “packaging component” is a product that is designed to be suitable for use, whether alone or in combination with other products, in the containment, protection, handling, delivery or presentation of goods at any stage in the supply chain of the goods from the producer of the goods to the user or consumer.

(2) Subject to section 52, it does not matter why a component within this definition is produced or imported (for example, whether it is produced or imported for use in the supply chain of the goods or by a user or consumer).

(3) A “plastic packaging component” is a packaging component that contains more plastic, when measured by weight, than any other single substance listed in regulations under subsection (7)(a).

(4) A packaging component that contains plastic is taken to be a plastic packaging component unless it is shown that it is not such a component.

(5) The Treasury may by regulations amend the meaning of “packaging component” by—

(a) adding descriptions of products, or

(b) removing descriptions of products.

(6) Regulations under subsection (5) may amend this Part.

(7) The Commissioners may by regulations—

(a) list substances for the purposes of subsection (3);

(b) make provision about the methodology to be used, or the information or evidence required, to satisfy them that a packaging component that contains plastic is not a plastic packaging component.

Commencement Information

I3 S. 48 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

I4 S. 48 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4

49 Meaning of “plastic” and “recycled plastic” U.K.

(1) “Plastic” means a material consisting of a polymer, other than a cellulose-based polymer that has not been chemically modified, to which additives or other substances may have been added.

(2) “Recycled plastic” is plastic that has been reprocessed from recovered material by means of a chemical or manufacturing process, other than organic recycling, so that it can be used either for its original purpose or for other purposes.

(3) “Organic recycling” means the aerobic or anaerobic treatment, under controlled conditions and using micro-organisms, of biodegradable matter, which produces stabilised organic residues or methane.

(4) “Recovered material” is pre-consumer plastic or post-consumer plastic that—

(a) has been collected and recovered as a material input, in lieu of new primary material, for a recycling or a manufacturing process, and

(b) would otherwise have been disposed of as waste or used for energy recovery.

(5) “Pre-consumer plastic” is plastic that is—

(a) recovered from waste generated in a manufacturing process, and

(b) processed by a reprocessing facility,

but does not include plastic that is reused in the same process in which it was generated as scrap and from which it was recovered.

(6) “Post-consumer plastic” is plastic—

(a) that is generated by households or by commercial, industrial or institutional facilities in their role as end-users of the product, and

(b) that can no longer be used for its intended purpose.

This includes returns of plastic from the distribution chain.

(7) Plastic is not to be taken as recycled plastic unless it is shown that it is recycled plastic.

(8) The Treasury may by regulations amend the meaning of “plastic” and “recycled plastic”.

(9) Regulations under subsection (8) may amend this Part.

(10) The Commissioners may by regulations make provision about the methodology to be used, or the information or evidence required, to satisfy them that plastic is recycled plastic.

Commencement Information

I5 S. 49 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

I6 S. 49 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4

50 Time of importation U.K.

(1) A chargeable plastic packaging component is imported into the United Kingdom—

(a) in the case of a component that is subject to customs formalities within the meaning given by section 1(1) of CEMA 1979, as soon as all such formalities have been complied with in respect of the component, and

(b) in any other case, at the time of importation for the purposes of the customs and excise Acts.

(2) [F1 Subsection (1)] is subject to section 76 (Isle of Man: import and export of chargeable plastic packaging components).

[F2 (3) The Commissioners may by regulations make provision about when a chargeable plastic packaging component is imported into the United Kingdom for the purposes of plastic packaging tax.

(4) Regulations under subsection (3) may amend this Part.]

Textual Amendments

F1 Words in s. 50(2) substituted (24.2.2022) by Finance Act 2022 (c. 3), Sch. 12 para. 3(1)(a)

F2 S. 50(3)(4) inserted (24.2.2022) by Finance Act 2022 (c. 3), Sch. 12 para. 3(1)(b)

Commencement Information

I7 S. 50 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

I8 S. 50 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4