HMRC has updated its plastic packaging tax guidance Further
information for businesses at section 2.4 ‘finished packaging
component’ to provide further detail on the point at which a plastic packaging
component becomes chargeable to plastic packaging tax. A component becomes
chargeable when it is finished, having undergone its ‘last substantial
modification’.
Where a substantial modification is undertaken as part of the
packing or filling process it should be ignored for the purposes of determining
when a component is chargeable for plastic packaging tax. In these cases, the
business that undertakes the last substantial modification before the packing
or filling process will be liable for the tax.
Businesses which import plastic packaging components which have
already undergone their last substantial modification, and are therefore
considered finished, will be liable for plastic packaging tax.
The guidance also introduces a number of new examples of manufacturing
processes that are substantial modification processes.
Plastic packaging tax is due to come into effect on 1 April
2022.
HMRC has updated its plastic packaging tax guidance Further
information for businesses at section 2.4 ‘finished packaging
component’ to provide further detail on the point at which a plastic packaging
component becomes chargeable to plastic packaging tax. A component becomes
chargeable when it is finished, having undergone its ‘last substantial
modification’.
Where a substantial modification is undertaken as part of the
packing or filling process it should be ignored for the purposes of determining
when a component is chargeable for plastic packaging tax. In these cases, the
business that undertakes the last substantial modification before the packing
or filling process will be liable for the tax.
Businesses which import plastic packaging components which have
already undergone their last substantial modification, and are therefore
considered finished, will be liable for plastic packaging tax.
The guidance also introduces a number of new examples of manufacturing
processes that are substantial modification processes.
Plastic packaging tax is due to come into effect on 1 April
2022.
