Following the 26 November 2025 budget please be advised of the following changes regarding the HMRC Plastic Packaging Tax (PPT).
This applies to companies manufacturing or importing more than 10 tonnes a year of plastic packaging. The tax is payable for plastic packaging which does not meet the 30% minimum recycled content threshold.
1. Rate Change April 2026
PPT will increase in line with the Consumer Price Index (CPI). The rate will increase from £223.69 per tonne to £228.82 per tonne from 1 April 2026 and will apply to plastic packaging containing less than 30% recycled plastic that is manufactured in and imported into the UK. This change will be legislated for in Finance Bill 2025-26.
The rate will be updated on GOV.UK in due course here: Plastic Packaging Tax: steps to take – GOV.UK.
2. Mass Balance Approach (MBA) and Removal of Pre-Consumer Plastic*
As previously announced, the government confirmed at Budget 2025 that it would allow businesses to use a Mass Balance Approach (MBA) to attribute chemically recycled plastic for the purposes of PPT with effect from April 2027. From the same date, pre-consumer waste will no longer be accepted as a source of recycled plastic for the purposes of PPT. Provision for these changes will be legislated for in Finance Bill 2025-26.
*Pre-consumer plastic refers to waste generated during the manufacturing process that has not yet reached the consumer, including scraps, defective products, and unused excess materials.
MBA – What Happens Next
HMRC are developing the detailed requirements of MBA in collaboration with the Industry Technical Working. The details will be set out in Regulations and published for technical consultation during 2026. We will provide further updates via the PPT MBA mailing list.
3. Mechanical Recycling and Mandatory Certification
As announced at Budget 2025, the government will be launching a consultation in early 2026 to seek views on the potential introduction of mandatory certification for businesses claiming relief from PPT on the basis that their plastic packaging contains at least 30% mechanically recycled plastic, following compliance concerns raised by businesses.
This consultation will explore the risks and issues with the verification of mechanically recycled plastic and invite views on the whether to introduce mandatory certification and the potential impacts on businesses.
