Scottish Landfill Communities Fund (SLCF)
Fund due to close
On 13th January 2026, as part of the 2026-27 Scottish Budget, the Scottish Government announced that there will be no further contributions to the SLCF beyond 31 March 2026. With the rate of landfill declining this will mark the beginning of the complete closure of the fund which has benefitted a huge number of community and environmental projects in Scotland.
Approved Bodies, who distribute SLCF funds to projects, will have up to two financial years to pass on their remaining funds to projects, until March 2028. Once these funds are allocated, the fund will close permanently. In the meantime, the SEPA SLCF team will continue to support and work closely with Approved Bodies in its role as regulator of the fund. The Scottish Landfill Tax (Administration) Amendment Regulations 2026 has enacted this change.
Overview
The Scottish Landfill Communities Fund (SLCF) is a funding scheme for community and environmental projects in Scotland.
Landfill site operators can pay some of their landfill tax to bodies approved by SEPA, to pass funds onto eligible community and environmental projects. Landfill operators cannot directly fund projects and cannot control how SLCF funding is spent.
For more information you can view the The Scottish Landfill Tax (Administration) Regulations 2015.
Key roles
- Landfill operators: carry out a taxable activity (landfilling) so must be registered with Revenue Scotland. They may contribute up to 5.6% of their tax liability to the SLCF. Contributions must be made directly to an Approved Body. Landfill operators can claim a tax credit equal to 90% of any qualifying contribution made. Once a contribution is made, landfill operators have no control over how the contribution is spent
- Approved Bodies: organisations, approved by SEPA, distribute SLCF funding to eligible projects. They receive contributions from landfill operators and consider applications for funding. Each Approved Body has its own application process and will enrol projects to be awarded funding
- Projects: individuals or organisations that have been awarded funding (enrolled) by one or more Approved Bodies. The grant of funding is to carry out a specific project that meets the criteria pf the SLCF. Projects are operated on a not-for-profit basis.
SLCF regulation
- Scottish Government: Holds overall policy responsibility.
- Revenue Scotland: Oversees the fund, approves SEPA as regulator, and manages tax-related aspects. Visit the Revenue Scotland site here.
- SEPA: is the regulator of the fund, responsible for approving and monitoring Approved Bodies.
Further information
For a more detailed overview of the SLCF see the SLCF guidance manual.
If you require support, please contact our SLCF mailbox at SLCF@sepa.org.uk
Looking for funding?
Follow the five steps listed below or take our online eligibility quiz to find out if your project could be eligible for SLCF funding.
Any organisation or group which is properly constituted can apply for funding for a project. These include community groups, parish councils, charities, community interest companies, sports clubs, community associations, local authorities and voluntary organisations.
The project must be in Scotland, be a not-for-profit concern and involve physical works
Projects must align with one or more of the following objectives:
- Land Reclamation and Restoration
- Community Recycling and Waste Prevention
- Public Parks and Amenities
- Biodiversity Conservation
- Restoration of Historic or Religious Buildings
- Administrative Support for Projects
Projects under objectives C, D, and E (listed in step 2) must be located within 10 miles of a landfill site or waste transfer station.
Use our location eligibility tool to check if your project meets this criterion.
Approved Bodies (ABs) accept applications for funding and make decisions on who they wish to fund. Their contact details can be found on our Register of Approved Bodies. You can apply to any one of these and your choice is not limited to the AB operating nearest to the location of your project.
The Approved Body will:
- Review your application
- Assess eligibility and impact
- Notify you of the outcome
- If successful, issue a funding agreement with conditions and timelines
An approved body may require that projects arrange or secure a third party contribution before releasing the payment of agreed SLCF funds. This is a small payment from a third party to unlock the landfill operator’s contribution: landfill operators can only claim a tax credit of 90% of the money contributed. In some cases the landfill operator will absorb this cost themselves, being aware of the benefits that can be derived from participating in the fund. Alternatively, the landfill operator may require a third party to pay the 10% required to make their contribution to the SLCF cost neutral.
For more details on the eligibility criteria for SLCF funding see the SLCF guidance manual
Information for approved bodies
Approved Bodies (ABs) are organisations, approved by SEPA to distribute SLCF funding to eligible projects. They receive contributions from landfill operators and consider applications for funding. Each AB has its own application process and will enrol projects that are to be awarded funding.
Core obligations
ABs must follow all conditions issued by SEPA, including operational and reporting requirements. These include:
- Maintain status as a not-for-profit organisation
- Ensure Board/Trustee oversight of SLCF activities
- Notify SEPA of any changes to governance or structure
- Consider applications for funding and enrol successful projects
- Only fund projects that meet the general and specific eligibility criteria
- Enrol and monitor funded projects
- Ensure best use of SLCF monies—no personal or unrelated use
- Decisions and approvals
- Keep documentation for at least 6 years
- Submit Annual Return by the required deadline
- Submit monthly statutory notification form recording projects enrolled, transfers to enrolled projects and CTPs
- Submit statutory notification of contributions received within seven days from the date of receipt
- Respond to any SEPA information requests promptly
- Pay SEPA’s regulatory fee (currently 5% of contributions)
- Ensure all financial transactions are traceable and auditable
- Ensure qualifying contributions to are fully spent on the objects of the fund within 2 years of the date of receipt
- Eligible spend include payment to enrolled projects, SEPA fees and the administration costs
- Ensure administration costs do not exceed 10% of QCs received