The Plastic Packaging Tax (PPT) was introduced on 1 April and will be applied to all plastic packaging manufactured in or imported into the UK that does not contain at least 30% recycled plastic. The tax is designed to be an incentive for businesses to use more recycled plastic in packaging, stimulate increased levels of recycling and collection of plastic waste.

How do we know what is exempt?

Generally, those plastics which are exempt from the tax are:

• Plastics which are printed as being fully recycling (containing the recycling motif)
• Plastics designated as being for end-use (e.g. transport, containers for beverages etc.)
• Plastics used as part of a production process
• Plastics accompanied by a laboratory certificate stating their eligibility for recycling

Are there any other exemptions?

There are also specific product exemptions to the tax. They are products:

• used for the immediate packaging of licensed human medicine
• permanently recorded as set aside for non-packaging use
• used as transport packaging to import multiple goods safely into the UK
• used in aircraft, ship and rail goods stores

What about transport packing when importing goods?

Plastic Packaging Tax is also not charged on transport packaging (also known as tertiary packaging) used in the delivery of goods into the UK. You do not need to account for it on your tax return, as long as it is either a:

• road, rail, ship or air container
• packaging component that is used to both:
• transport multiple sales units or grouped packaging
• prevent damage during transportation

This exemption applies to transport packaging used for preventing damage during shipment to the UK.

What if it’s going to be exported?

You can defer paying the tax for up to 12 months if the packaging is going to be exported.

If you need any advice surrounding the introduction of the PPT, our professionals at Chambers Wales South East, South West and Mid can help. Get in touch today.