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First Tier Tax Tribunal

Last year we contested a preliminary issue with HMRC at the First Tier Tax Tribunal (the “Tribunal”) as to whether Augean (North and South) had appropriately interpreted certain elements of landfill tax law as described in guidance note LFT1 (published by HMRC).

The decision of the Tribunal has now been released, which has found in our favour. HMRC can appeal this decision within 56 days.

We are pleased with the outcome of the Tribunal and believe the decision is vindication of our view that we have correctly applied landfill tax law and paid the landfill tax correctly.

Given the decision establishes a basis of understanding for areas of landfill tax law, rather than dealing with specific disposals or payments; the decision does not change the value of the tax asset recognised and there will be no impact on guidance going forward or on the Group’s profit as a result of this decision.

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