Yes, but they must remain attached to the bottle. In the past, sorting facilities requested that caps be removed because they are made of a different plastic (usually PP, Code 5, or HDPE, Code 2) than the bottle itself (PET, Code 1). However, modern UK processing plants easily separate these materials during shredding and the density-water-tank flotation stage. Leaving the caps screwed onto flattened bottles prevents them from falling through the sorting machinery meshes and getting lost as litter.
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