Loss of Ignition: Difference between revisions
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[[Category:Legislation & Policy]] [[Category:Economics]] | [[Category:Legislation & Policy]] [[Category:Economics]] | ||
The Loss of Ignition Test (LoI) is a test to measure the biodegradable and/or combustible element of the waste being disposed into [[Landfill]] and is indicative of the likely pollution potential. It has special relevance to [[Landfill Tax]] and the appropriate rate to be charged. The test was focused on the fine material from waste processing from 2015 with the introduction of the Landfill Tax (Qualifying Fines)(No.2) Order 2015<ref>http://www.legislation.gov.uk/uksi/2015/1385/pdfs/uksi_20151385_en.pdf</ref> which required LoI with less than 10% to qualify for the lower rate of [[Landfill Tax]] (with a transitional period with a LoI up to 15%). | The [[Loss of Ignition]] Test ([[LoI]]) is a test to measure the biodegradable and/or combustible element of the waste being disposed into [[Landfill]] and is indicative of the likely pollution potential. It has special relevance to [[Landfill Tax]] and the appropriate rate to be charged. The test was focused on the fine material from waste processing from 2015 with the introduction of the Landfill Tax (Qualifying Fines)(No.2) Order 2015<ref>http://www.legislation.gov.uk/uksi/2015/1385/pdfs/uksi_20151385_en.pdf</ref> which required LoI with less than 10% to qualify for the lower rate or [[Inactive Waste]] rate of [[Landfill Tax]] (with a transitional period with a LoI up to 15%). | ||
The introduction of the LoI test requirement was driven by [[HMRC]] as they believed many waste processes that were designed to remove the fine inorganic 'soil' fraction of waste (often via a screening/sieving process) were in fact just removing a small particle size of waste that was not necessarily inorganic. This was evidenced by a sharp increase in the [[EWC]] code often used for these 'process fines' ([[EWCChap19|19 12 12]]) which has also been used by many waste operators as the [[EWC]] code for [[RDF]] due to the description in the code (and [[RDF]] had also been increasing over time with greater production for use in UK [[EfW]] and for export to EU based [[R1]] [[EfW]] facilities). The transition period was allowed for operators to make investment in their equipment and sorting processes to remove the organic fraction in the fines. | The introduction of the LoI test requirement was driven by [[HMRC]] as they believed many waste processes that were designed to remove the fine inorganic 'soil' fraction of waste (often via a screening/sieving process) were in fact just removing a small particle size of waste that was not necessarily inorganic (with the express exclusion of artificial or deliberate mixing of material being able to qualify at the lower rate landfill tax)<ref>[https://www.gov.uk/government/publications/excise-notice-lft1-a-general-guide-to-landfill-tax/excise-notice-lft1-a-general-guide-to-landfill-tax#lower-rate-qualifying-fines HMRC Notice LFT1 Guidance]</ref>. This was evidenced by a sharp increase in the [[EWC]] code often used for these 'process fines' ([[EWCChap19|19 12 12]]) which has also been used by many waste operators as the [[EWC]] code for [[RDF]] due to the description in the code (and [[RDF]] had also been increasing over time with greater production for use in UK [[EfW]] and for export to EU based [[R1]] [[EfW]] facilities). The transition period was allowed for operators to make investment in their equipment and sorting processes to remove the organic fraction in the fines. | ||
Latest revision as of 13:45, 15 December 2020
The Loss of Ignition Test (LoI) is a test to measure the biodegradable and/or combustible element of the waste being disposed into Landfill and is indicative of the likely pollution potential. It has special relevance to Landfill Tax and the appropriate rate to be charged. The test was focused on the fine material from waste processing from 2015 with the introduction of the Landfill Tax (Qualifying Fines)(No.2) Order 2015[1] which required LoI with less than 10% to qualify for the lower rate or Inactive Waste rate of Landfill Tax (with a transitional period with a LoI up to 15%).
The introduction of the LoI test requirement was driven by HMRC as they believed many waste processes that were designed to remove the fine inorganic 'soil' fraction of waste (often via a screening/sieving process) were in fact just removing a small particle size of waste that was not necessarily inorganic (with the express exclusion of artificial or deliberate mixing of material being able to qualify at the lower rate landfill tax)[2]. This was evidenced by a sharp increase in the EWC code often used for these 'process fines' (19 12 12) which has also been used by many waste operators as the EWC code for RDF due to the description in the code (and RDF had also been increasing over time with greater production for use in UK EfW and for export to EU based R1 EfW facilities). The transition period was allowed for operators to make investment in their equipment and sorting processes to remove the organic fraction in the fines.