May 5, 2025 17:00

The UK’s Plastic Packaging Tax, in place since 2022, applies to plastic packaging that contains less than 30% recycled content. As of April, the tax rate has risen to £223.69 per tonne of packaging produced or imported.

HMRC (Her Majesty’s Revenue and Customs), the government body responsible for tax collection and enforcement, recently published its updated roadmap for the tax, outlining two key changes set to take effect in 2027.

The first, welcomed by the packaging industry, is the inclusion of chemically recycled content—provided it is calculated using the mass balance approach and supported by certified documentation. This change, long anticipated by stakeholders, follows a public consultation held late last year.

However, the new rules will also exclude pre-consumer plastic waste—including production scrap—from the calculation of recycled content that qualifies for the tax exemption. In other words, only post-consumer recycled materials—mechanically or chemically processed—will be considered valid.

The reform, originally scheduled for 2029 but now moved up to 2027, will require companies to urgently reassess their sourcing strategies and implement robust traceability systems for chemical recycling feedstocks. The changes will also apply to foreign companies importing 10 tonnes or more of plastic packaging into the UK annually.

© Polimerica -  Reproduction prohibited, all rights reserved