Changes to the Plastic Packaging Tax Announced

The UK Government has announced that use of the mass-balance approach for chemically recycled plastic for purposes of the Plastic Packaging Tax (PPT) will take effect from 1 April 2027.

Mass balance allows industries to track materials and enables recycled or sustainable inputs mixed with virgin material during the process to be allocated to particular outputs.

The Government sees this move as key to unlocking circular solutions for hard-to-recycle materials, such as films and flexibles. By incorporating mass balance into PPT compliance, it paves the way for greater uptake of advanced recycling technologies while protecting the credibility of recycled content claims.

To safeguard the integrity of this system, HMRC has also announced plans to introduce formal accreditation requirements for certification bodies that verify recycled content using mass balance. Only bodies that meet these requirements will be permitted to issue valid certifications for PPT compliance purposes.

HMRC has also confirmed that pre-consumer plastic waste will no longer qualify as recycled content under the tax. This includes materials generated and reused during production, such as offcuts or regrind.

The revised Plastic Packaging Tax rules – covering the adoption of mass balance and the exclusion of pre-consumer waste – will take effect from 1 April 2027. This provides a two-year transition period for businesses to assess packaging strategies, align their supply chains, and ensure all data and certification processes are compliant.

As one of the UK’s leading packaging compliance schemes, Clarity offers expert guidance and practical support to help your business prepare for these upcoming changes. From interpreting new regulatory requirements to managing complex packaging data, we’ll help you stay ahead of the curve.

Get in touch today.