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SPI Regulation Tracker

Packaging rule · United Kingdom · Tax or levy

UK Plastic Packaging Tax

Packaging tax or levy covering plastic in the United Kingdom, set by HM Revenue & Customs. Applies since 1 April 2022.

By the SPI teamRule ID PR-GB-001Source consulted 14 October 2026Verified 14 October 2026
Sourced facts

The rule

Recorded from the official source named below. Rates and dates are as the source states them on the date it was consulted.

Jurisdiction
United Kingdom
Authority
HM Revenue & Customs
Rule type
Tax or levy
Materials
Plastic
Status
In force Enacted
Rate or target
228.82 GBP/tonneRate from 1 April 2026 (was £223.69 from 1 April 2025). Applies below a 30% recycled content threshold. No 2027 rate published on GOV.UK at 13 Oct 2026. Mass balance and pre-consumer changes apply from 1 April 2027 (HMRC, 26 Nov 2025).
Adopted or published
1 April 2022
Applies from
1 April 2022
From the source

“The new rate for Plastic Packaging Tax from 1 April 2026 is £228.82 per tonne.”

Official source GOV.UK: Plastic Packaging Tax: steps to takeOfficial (government or regulator) · consulted 14 October 2026

Deadlines

Key dates

  1. Adopted or published 4 years and 6 months ago

  2. Applies from 4 years and 6 months ago

  3. Source consulted by the SPI team 1 day ago

  4. Re-checked by a second SPI team member 1 day ago

SPI analysis

What it means

SPI analysis Our reading of the official source above. Not legal advice; always rely on the official text.

SPI summary

Tax on plastic packaging components manufactured in or imported into the UK that contain less than 30% recycled plastic. It began on 1 April 2022 at £200 per tonne and is uprated each April; the rate from 1 April 2026 is £228.82 per tonne. From 1 April 2027 a mass balance approach applies to chemically recycled plastic and pre-consumer plastic no longer counts as recycled.

In practice

Plastic Packaging Tax is charged on finished plastic packaging components manufactured in or imported into the UK that contain less than 30% recycled plastic, at £228.82 per tonne from 1 April 2026. Converters and importers carry the tax, and the cost and recycled content evidence pass to brand owners through supply contracts. HMRC has announced that from 1 April 2027 pre-consumer plastic will no longer count towards the 30% threshold and a certified mass balance approach for chemically recycled plastic will be introduced.

Where the record is unclear

  • The detailed mass balance certification standards and amended secondary legislation for the 1 April 2027 changes were not reviewed in final form; the policy paper says the regulations will be updated.
  • The rate from 1 April 2027 was not found on the pages consulted.

Where it sits in the tracker

  • One of 7 packaging rules we track in the United Kingdom, of which 1 are tax or levy rules.
  • In all, 4 tax or levy rules are tracked across 3 jurisdictions. Compare them below

Company profiles that map to this rule

Companies whose SPI profile lists this rule in its regulatory exposure, based on where they report selling. Not company-reported.

SPI analysis

Overview

Plastic Packaging Tax sits in Part 2 of the Finance Act 2021, sections 42 to 85 with Schedules 9 to 15, and section 42 gives HMRC the job of collecting and managing it1. Section 43 creates the charge when a chargeable plastic packaging component is produced in the UK in the course of a business or imported on behalf of one. Section 47 makes a finished component chargeable when its recycled plastic, now including attributed recycled plastic, is less than 30% of the total plastic in it1. Section 45 sets the rate, now £228.82 per metric tonne as substituted by the Finance Act 20261.

The design is a cliff, not a sliding scale: a component at or above the 30% line pays nothing, and one below it pays on its full weight. That makes the definition of recycled plastic in section 49 the real lever. The Finance Act 2026 inserted sections 49A and 49B so that chemically recycled plastic can count when allocated through a certified mass balance process, and HMRC confirmed on 26 November 2025 that from 1 April 2027 scrap from manufacturing (pre-consumer plastic) will stop counting46. Draft certification regulations for 2027 were published on 6 October 20265.

Duties

Who must do what

UK producers of finished plastic packaging components

  • Account for and pay the tax on chargeable components it produces in the UK, as the person liable under section 441.
  • Register with HMRC where section 55 is met and notify liability within 30 days under section 561.
  • File returns for accounting periods set under section 61; HMRC statistics describe four quarterly returns per tax year, 1 April to 31 March19.
  • Keep section 63 records and give business customers statements under section 681.

Businesses on whose behalf components are imported

  • Pay the tax on chargeable components imported on its behalf, whether the packaging is empty or holds goods (section 44)1.
  • Count imported finished components towards the same 10 tonne registration test as UK production (section 55)1.
  • Hold evidence for any recycled content claim, since section 49 presumes plastic is not recycled unless shown otherwise1.

Business customers buying plastic packaging

  • Expect suppliers to use section 70, which lets a supplier adjust payment under an existing contract when the tax becomes chargeable or changes1.
  • Check supplier compliance, because section 59 and Schedule 9 let HMRC serve notices imposing secondary or joint and several liability for unpaid tax1.

HMRC

  • Collect and manage the tax (section 42), keep the register (section 54) and assess penalties under section 80 and Schedule 14123.
  • Set minimum standards by Commissioners' notice for certification schemes and accrediting bodies under the draft 2027 regulations, without running certification itself46.
Scope

Are you in scope?

Work through each question. The answers are the SPI team's reading of the sources cited.

  1. Do you produce plastic packaging components in the UK, or have them imported on your behalf, in the course of a business?

    If yes
    The section 43 charge can reach you; apply the weight and recycled content tests next1.
    If no
    You are outside the charge, though a supplier may ask you for information if you convert components it supplies (section 70)1.

  2. Do you expect 10 tonnes or more of finished components in the next 30 days, or did you reach 10 tonnes over the previous 12 months?

    If yes
    Registration is required, with notification due within 30 days of liability arising (sections 55 and 56)1.
    If no
    No duty to register yet; the look-back is recalculated from the first day of each month, so the test repeats17.

  3. Does the item contain more plastic by weight than any other substance listed in section 48?

    If yes
    It is a plastic packaging component for the tax1.
    If no
    It is outside the tax, but section 48 presumes plastic-containing packaging is plastic packaging unless you show otherwise1.

  4. Is recycled plastic, including attributed recycled plastic, at least 30% of the plastic in the finished component?

    If yes
    The component is not chargeable under section 471.
    If no
    Tax is due on the component at the section 45 rate1.

  5. Does your recycled share depend on pre-consumer scrap?

    If yes
    From 1 April 2027 that share no longer counts, so the component can fall below 30% and become chargeable48.
    If no
    Post-consumer content keeps counting after 1 April 20278.
Checklist

Compliance checklist

  1. Run the 10 tonne test every month

    By Now

    SPI analysis of the official text. Not legal advice; confirm with the text or counsel. Measure finished components produced and imported against the 30-day forward test and the 12-month look-back in section 551.

    Evidence to keep Monthly tonnage log by site and import entry, with the date the threshold was first expected or met.

  2. Document recycled content per component

    By Each return

    Because section 49 presumes plastic is not recycled, every component claimed at or above 30% needs supplier evidence of recovered material and the reprocessing route1.

    Evidence to keep Supplier certificates, batch specifications and the recycled share calculation for each component.

  3. Comment on the draft mass balance regulations

    By 21 December 2026

    HMRC takes comments on the draft Chemical Recycling Certification Schemes Regulations 2027 until 11:59pm on 21 December 2026, and asks for views from businesses planning to use mass balance and from certification bodies5.

    Evidence to keep Copy of any response and the list of suppliers that expect certification.

  4. Strip pre-consumer plastic from 30% calculations

    By 1 April 2027

    Recalculate each component without the scrap that section 49(5) currently treats as pre-consumer, and source post-consumer replacement where the share drops under 30%18.

    Evidence to keep Before and after calculations for every affected component.

  5. Check certificates before claiming attributed plastic

    By 1 April 2027

    Draft regulation 13 requires supplier declarations, certificates and due diligence, and draft regulation 15 requires a public database of certified persons6.

    Evidence to keep Certificate numbers checked against the scheme database, with dates of each check.

  6. Retain records for six years

    By Ongoing

    Draft regulation 14 requires attribution declarations and certificates to be kept for at least 6 years from creation, on top of the record duty in section 63 of the Finance Act 202116.

    Evidence to keep Retention schedule covering declarations, certificates and returns.

Enforcement

Enforcement and penalties

Who enforces
HM Revenue and Customs
Powers
Information and evidence powers under section 64 and Schedule 12, security for tax under section 65, recovery and overpayment rules in Schedule 10, and notices of secondary or joint and several liability under section 59 and Schedule 91.
Enforcement so far
HMRC has not published a named Plastic Packaging Tax penalty case that SPI could cite by 14 October 2026.

Penalties

BreachPenaltyLegal basis
Failure to comply with a relevant requirement listed in section 80(7), such as records, statements, register variations or security£500 fixed penaltyFinance Act 2021, section 80(1)2
Continuing failure to comply with a relevant requirement£40 for each day after the first that the failure continuesFinance Act 2021, section 80(1)2

HMRC assesses section 80 penalties under Schedule 14, normally within 4 years of the act or omission, rising to 20 years where the loss of tax was deliberate or the failure concerns registration under section 553. A reasonable excuse defeats the penalty, and HM Treasury may uprate the £500 and £40 amounts for inflation2. Under the draft 2027 regulations, policing of mass balance claims moves partly to certification bodies, which can suspend a certificate when a failure is not put right or withdraw it for significant, deliberate or repeated failures6.

Connections

How it fits with other rules

  • UK packaging EPR regulations (pEPR) 2024 PR-GB-002
    Plastic Packaging Tax and packaging EPR fall on overlapping tonnage but use different tests: the tax looks at recycled content of each finished component at manufacture or import, while SI 2024/1332 looks at household packaging supplied and its recyclability. A pack can be recyclable for EPR and still taxable at under 30% recycled plastic1.
  • PackUK year 2 (2026-27) modulated packaging EPR fees PR-GB-003
    PackUK's year 2 plastic fees are quoted per tonne, which invites adding them to the £228.82 tax rate. But disposal fees cover only large producers' household packaging, while the tax covers every finished plastic component of a registered business1.
  • Spain special tax on non-reusable plastic packaging PR-ES-001
    Spain charges its tax on the non-recycled plastic in a pack, so each extra kilogram of recycled content lowers the bill. The UK charge switches on or off at 30%, so a supplier to both markets needs per-component plastic weights for Spain and a pass or fail recycled share for the UK1.
  • Draft Plastic Packaging Tax (Chemical Recycling Certification Schemes) Regulations 2027
    The draft regulations are made under sections 49(10), 49A, 49B, 63 and 84 of the Finance Act 2021, as amended by sections 105 and 106 of the Finance Act 2026. Draft regulation 16 amends regulations 6, 7 and 23 of the Plastic Packaging Tax (General) Regulations 2022 so that attributed recycled plastic enters the evidence and recycled content rules6.
Timeline

History of the rule

  1. Tax starts at £200 per tonne on components below 30% recycled plastic79.

  2. HMRC opens a 12-week consultation on chemical recycling and mass balance, closing on 10 October 20234.

  3. HMRC policy paper confirms both 1 April 2027 changes: mass balance for chemically recycled plastic and removal of pre-consumer plastic4.

  4. Rate reaches £228.82 per tonne, after £217.85 from April 2024 and £223.69 from April 20257.

  5. Consultation opens on third-party certification for mechanically recycled plastic, running to 10 August 2026 with no start date set8.

  6. Draft Chemical Recycling Certification Schemes Regulations 2027 and a dual-use factors reference document are published5.

  7. Today

  8. Comments on the draft 2027 regulations close at 11:59pm5.

  9. Pre-consumer plastic stops counting as recycled and certified mass balance attribution becomes available48.

Questions

Questions

What changes for UK Plastic Packaging Tax on 1 April 2027?

From 1 April 2027 pre-consumer waste is no longer classed as recycled plastic, so only reprocessed post-consumer waste helps a component reach 30%8. From the same date chemically recycled plastic can count when it is attributed through a certification scheme meeting the mass balance standards4.

When do comments close on the draft mass balance regulations?

HMRC published the draft Plastic Packaging Tax (Chemical Recycling Certification Schemes) Regulations 2027 on 6 October 2026. Comments close at 11:59pm on 21 December 2026. Regulation 1 of the draft still leaves the commencement day blank56.

Is the rate from 1 April 2027 known yet?

As of 14 October 2026, GOV.UK lists no rate for 2027-28. The latest listed figure is £228.82 per tonne from 1 April 2026, up from £200 when the tax began on 1 April 20227.

Who must register for Plastic Packaging Tax?

Section 55 of the Finance Act 2021 requires registration where a business expects 10 tonnes or more of finished plastic packaging components in the next 30 days, or produced or imported 10 tonnes over the previous 12 months. Notification is due within 30 days of the liability arising under section 561.

What penalties apply to Plastic Packaging Tax failures?

Section 80 sets a £500 fixed penalty plus £40 for each further day a failure to meet a relevant requirement continues2. HMRC normally has 4 years from the failure to assess under Schedule 143.

Glossary

Definitions

Plastic packaging component
A packaging component, meaning an item designed to contain, protect, handle, deliver or present goods, that contains more plastic by weight than any other substance listed in section 48 of the Finance Act 20211.1
Recycled plastic
Plastic reprocessed from recovered material by a chemical or manufacturing process, other than organic recycling (section 49)1.1
Pre-consumer plastic
Scrap recovered from a manufacturing process and processed by a reprocessing facility (section 49(5)); it ceases to count as recycled from 1 April 202714.1
Attribution
Under draft regulation 2, an attribution of recovered material under section 49A(2)(c) of the Finance Act 2021, recorded in a written attribution declaration6.6
Sources

Sources for this analysis

  1. legislation.gov.uk: Finance Act 2021, Part 2 (Plastic packaging tax), sections 42 to 72 Official · Consulted 14 October 2026
  2. legislation.gov.uk: Finance Act 2021, section 80 (penalty for contravening relevant requirements) Official · Consulted 14 October 2026
  3. legislation.gov.uk: Finance Act 2021, Schedule 14 (assessment of penalties) Official · Consulted 14 October 2026
  4. GOV.UK (HMRC policy paper, 26 November 2025): Plastic Packaging Tax: mass balance approach and removal of pre-consumer plastic Regulator · Consulted 14 October 2026
  5. GOV.UK (HMRC consultation, 6 October 2026): Draft legislation: Plastic packaging tax, chemical recycling and adoption of a mass balance approach Regulator · Consulted 14 October 2026
  6. GOV.UK: Draft Plastic Packaging Tax (Chemical Recycling Certification Schemes) Regulations 2027 (accessible version) Official · Consulted 14 October 2026
  7. GOV.UK: Plastic Packaging Tax: steps to take (rates) Regulator · Consulted 14 October 2026
  8. GOV.UK (HMRC consultation, 18 May 2026): Plastic Packaging Tax: potential certification for mechanically recycled plastic packaging Regulator · Consulted 14 October 2026
  9. GOV.UK: Plastic Packaging Tax (PPT) statistics: background and references (27 August 2026) Statistics · Consulted 14 October 2026
  10. GOV.UK: Work out which packaging is subject to Plastic Packaging Tax Consulted 13 October 2026
  11. GOV.UK: Check which plastic packaging is exempt from Plastic Packaging Tax Consulted 13 October 2026

Written by the SPI team on 14 October 2026. Sources checked as of 14 October 2026. SPI analysis, not legal advice; always rely on the official text.

Audit trail

Change history

Verified: a second SPI team member re-checked every fact above against the source on 14 October 2026. Any later change to the facts sends the rule back to Sourced and is logged here.

  1. Verified by a second SPI team member

  2. Changed: SPI summary, rate note

  3. Verified by a second SPI team member

  4. Added to the tracker

Spotted an error? Write to sales@strategicpackaginginsights.com quoting PR-GB-001 and the source. Corrections are logged in this history.

Other jurisdictions

Tax or levy rules elsewhere

The same type of rule for the same materials in other jurisdictions, by the date it applies.

RuleWhereTypeMaterialsStatusApplies from
EU plastic own resource on non-recycled plastic packaging wastePR-EU-017European UnionTax or levyPlasticIn force1 January 2021
Spain special tax on non-reusable plastic packagingPR-ES-001SpainTax or levyPlasticIn force1 January 2023
Proposed increase of EU plastic own resource to EUR 1/kg from 2028PR-EU-018European UnionTax or levyPlasticProposed–

Every tax or levy rule in the tracker

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