Scotland will end the landfill tax credit that underpins the Scottish Landfill Communities Fund (SLCF) on 1 April 2026. Ministers say the scheme will close to new contributions while allowing projects financed from existing pots to continue through a managed wind‑down. ([revenue.scot](Link

The change turns off regulation 27 of the 2015 rules-the mechanism that let landfill operators claim a credit worth up to 90% of donations to approved bodies, capped at 5.6% of their tax liability. In short: after 1 April, no new credits; before then, contributions remain eligible under the current cap. ([legislation.gov.uk](Link

Why now? Government papers point to falling landfill volumes and declining Scottish Landfill Tax revenues, making the fund unsustainable in its current form. Following a 2025 consultation, officials flagged that contributions have more than halved since 2015 and could fall to around £1.4 million in 2026‑27. ([consult.gov.scot](Link

The shift comes alongside a wider waste policy pivot. SEPA’s temporary approach to the biodegradable municipal waste landfill ban gives operators limited flexibility until the ban fully bites from 1 January 2028, reflecting a capacity gap as new treatment comes online. Household waste to landfill fell to 254,000 tonnes in 2024, down 38% year‑on‑year-the lowest on record. ([beta.sepa.scot](Link

From a climate perspective, cutting landfill matters because waste remains a potent source of methane. Scotland’s waste sector emitted an estimated 1.6 MtCO2e in 2022-small compared with energy or transport, but one of the most cost‑effective areas to abate. Ending the credit while raising tax rates nudges residual waste out of the ground. ([gov.scot](Link

Communities have felt the fund’s benefit. SEPA reports SLCF awards totalling around £54 million since 2015 for local environmental projects-from access paths to habitat improvements-delivered via a network of approved bodies such as EB Scotland and Fife Environment Trust. That track record explains why ministers have built in a two‑year tail to protect live and near‑term projects. ([beta.sepa.scot](Link

What changes on the ground? Revenue Scotland confirms prior contributions should keep projects moving until March 2028, while the Scottish Budget sets out that new contributions end on 1 April 2026. Analysis of consultation responses is due mid‑January to clarify next steps for community support models. ([revenue.scot](Link

If you run a community group within range of a landfill site, act now. Speak to your local approved body about applications before 31 March 2026, line up match funding, and keep strong records-Revenue Scotland can claw back credits if money isn’t spent on approved objectives within set timeframes. Also scan alternative funding routes such as NatureScot’s Nature Restoration Fund and council‑level allocations where open. ([revenue.scot](Link

Landfill operators should update 2026–27 budgets and compliance plans. Credits on contributions made after 1 April 2026 won’t be available; ensure any final SLCF contributions are processed in time and that reporting to both SEPA and Revenue Scotland remains current during the wind‑down. ([revenue.scot](Link

Looking ahead, ministers also propose higher Scottish Landfill Tax rates from 1 April 2026-£130.75 per tonne (standard) and £8.65 (lower)-to keep pressure on disposal and support circular economy goals. Councils have flagged short‑term capacity and cost pressures, but the policy direction is clear: less waste to landfill, more investment in reuse, recycling and treatment. ([gov.scot](Link