Scotland will close the route for landfill operators to claim Scottish Landfill Tax (SLfT) credit on new contributions to Approved Bodies from 1 April 2026. The change is set out in the Scottish Landfill Tax (Administration) Amendment Regulations 2026, which remove the entitlement to credit for qualifying contributions made on or after that date. Credits remain available only where the contribution was made before 1 April 2026. ([legislation.gov.uk](Link

For context, Regulation 27 of the 2015 Administration Regulations currently allows a 90% tax credit on qualifying contributions to an Approved Body, subject to a cap that limits the total credit to 5.6% of an operator’s SLfT liability in a contribution year. This mechanism underpins the Scottish Landfill Communities Fund (SLCF). ([legislation.gov.uk](Link

Ministers signalled this shift after a 2025 consultation on the future of the SLCF. The government’s own materials highlight shrinking landfill volumes and declining SLfT receipts, with contributions forecast to fall to about £1.4m in 2026–27, making the scheme operationally unviable in its current form. ([consult.gov.scot](Link

Revenue Scotland has confirmed the policy intent: close the SLCF to new contributions from 1 April 2026, while allowing previously made contributions to continue funding projects during a wind‑down to March 2028. For compliance teams, the practical reading is simple: no new contributions made on or after 1 April 2026 will attract SLfT credit. ([revenue.scot](Link

The cost backdrop also shifts. From 1 April 2026, the Scottish Budget moves SLfT rates to £130.75 per tonne (standard) and £8.65 per tonne (lower). Operators face higher per‑tonne charges at the same time as the contribution‑for‑credit route closes, so cash tax outflows will rise for sites that previously relied on the credit to offset liabilities. ([gov.scot](Link

A quick sense‑check helps with planning. Under current rules, a site with a £5m annual SLfT liability could claim up to £280,000 of credit (5.6% of liability) by making roughly £311,000 of qualifying contributions, because credit equals 90% of the contribution. The operator’s net cost would be about £31,000 while £311,000 flowed to projects. From 1 April 2026, that option disappears for new payments. ([revenue.scot](Link

Compliance teams have a short window to tidy the 2025–26 year. If you intend to support projects through the SLCF and claim credit, ensure contributions are received by the Approved Body before 1 April 2026, with full records of dates, amounts and Approved Body registration numbers. Also note Revenue Scotland’s rules on third‑party funding and the requirement to repay 90% of any contribution that is later returned by an Approved Body. ([revenue.scot](Link

Approved Bodies and charities should prepare for a thinner funding pipeline. The legislation and guidance limit administration to 10% of qualifying contributions and permit the regulator to charge a regulatory fee; the consultation materials confirm a two‑year deadline to use funds and note that the regulatory fee has operated at a higher level in recent years. With fewer inflows, some bodies may consolidate or exit. SEPA’s register provides current status. ([revenue.scot](Link

The SLCF has been material for communities: since 2015, more than £55m has been awarded across 2,072 projects. But contributions have more than halved since launch and are projected to tighten further. The wind‑down period to March 2028 means existing and prior allocations should continue, yet new money will be scarce without corporate budgets stepping in. ([gov.scot](Link

For landfill operators, the ESG angle now becomes a straight corporate giving question. If community investment remains a board priority, ring‑fence spend and agree criteria with delivery partners, but budget on the basis that SLfT credit will no longer offset those payments. For cross‑border groups, keep Scottish SLCF records distinct from the UK Landfill Communities Fund, as required by Revenue Scotland guidance. ([revenue.scot](Link

If you manage a waste contract or municipal P&L, factor in the 2026 rate rise and removal of credits when modelling gate‑fee reviews, indexation clauses and residual waste destinations. A small shift in tonnage or material classification will matter more once the lower rate doubles and the credit line falls away. ([gov.scot](Link

Key dates are clear. Contributions made up to and including 31 March 2026 can still qualify for credit under the existing framework; new contributions on or after 1 April 2026 will not. Previously made contributions are expected to support projects through to March 2028, subject to the usual two‑year use rule. Build your cashflow and community investment plans around those timelines. ([legislation.gov.uk](Link