Plastic Packaging Tax: April 2027 updates that industry should prepare for

The UK government has confirmed two major amendments to the Plastic Packaging Tax (PPT) that will come into force on 1 April 2027, including the acceptance of a mass balance approach for chemically recycled plastic and the removal of pre‑consumer waste as an eligible source of recycled content. Separately, a live consultation is examining potential changes to how businesses evidence mechanically recycled plastic, which could introduce further requirements beyond the measures already scheduled for 2027.

Mass balance approach approved for chemically recycled plastic

From April 2027, businesses will be permitted to use a mass balance approach to calculate the proportion of chemically recycled plastic contributing towards the 30 per cent recycled content threshold required for PPT exemption. This will only be allowed where the material is covered by an appropriate certification scheme that meets minimum requirements set out in forthcoming legislation and guidance.

The UK government has recently published additional guidance on the topic to help businesses get ready to use a mass balance approach to account for chemically recycled plastic. More detailed guidance will be published by the government in early 2027.

The change applies only to chemically recycled plastic manufactured in the UK or imported into the UK on or after 1 April 2027. Mass balance accounting will not be permitted for mechanically recycled plastic. Businesses using mechanically recycled material must continue to obtain direct evidence of its source and inclusion, as required under existing PPT rules.

Pre‑consumer waste to be excluded from PPT recycled‑content claims

The second confirmed change removes pre‑consumer waste as an eligible source of recycled plastic for PPT purposes. From 1 April 2027, only post‑consumer waste will count towards the 30 per cent recycled content threshold.

Pre‑consumer material, such as factory scrap or offcuts, can continue to be used in plastic packaging and often represents efficient material utilisation. However, it will no longer qualify as recycled under PPT rules. This change applies to all packaging components manufactured or imported from 1 April 2027.

Businesses holding existing stocks intended to support PPT recycled content claims are advised to use them before the new rules take effect.

Consultation on evidence requirements for mechanically recycled plastic

The government has now completed its consultation on future evidence requirements for mechanically recycled plastic, which closed on 10 August. Officials are reviewing the submissions and are expected to publish their response later this year, setting out whether additional verification measures will be introduced and how they will apply under the Plastic Packaging Tax. While no final decisions have yet been announced, the consultation indicates a clear direction towards strengthening documentation and audit standards to ensure recycled‑content claims are robust. Businesses should prepare for potential updates to evidence, supplier declarations and record‑keeping processes once the government’s formal response is released.

Implications for the adhesive tape industry

For adhesive tape manufacturers supplying into the UK market, the April 2027 changes are likely to influence sourcing strategies for recycled films and resins, certification requirements for chemically recycled content, and evidence processes for mechanically recycled material. The removal of pre‑consumer waste from PPT recycled content claims may also affect product development and portfolio planning where tax liability shapes competitiveness.

Afera has recently updated the industry-specific guidance document on UK PPT, developed exclusively for its members. To understand the overall scope and the topics covered in the guidance document, Afera has also made an Executive Summary document publicly available.

Further information

• Afera position on UK Plastic Packaging Tax (members-only)
• Executive Summary – Afera position on UK Plastic Packaging Tax
• To receive future updates on UK PPT, including consultations and guidance, please email teamindirecttaxdesign@hmrc.gov.uk