Aggregates levy
Aggregates levy

The following Environment guidance note provides comprehensive and up to date legal information covering:

  • Aggregates levy
  • Brexit impact
  • What is the aggregates levy?
  • Meaning of taxable aggregate
  • Meaning of exploited
  • Meaning of commercial exploitation
  • Who pays the aggregates levy?
  • Registration requirements
  • Unconditional exemptions from registration
  • Deregistration
  • more

Brexit impact

As of exit day (31 January 2020) the UK is no longer an EU Member State. However, in accordance with the Withdrawal Agreement, the UK has entered an implementation period, during which it continues to be subject to EU law. This has an impact on this content. For further guidance, see: Brexit—impact on environmental law and Brexit Bulletin—key updates, research tips and resources.

What is the aggregates levy?

The aggregates levy is an environmental tax administered by HMRC on the commercial exploitation of aggregates in the UK.

When does the levy apply?

The levy applies when:

  1. there is a taxable aggregate, and

  2. that aggregate is commercially exploited within the UK

Meaning of taxable aggregate

Aggregate

Aggregates means:

  1. rock

  2. gravel, or

  3. sand

It also covers substances integrated into the rock, gravel or sand or that naturally occur with them, including the spoil, waste, off-cuts and other by-products.

Taxable aggregate

Taxable aggregate means any quantity of aggregate subject to commercial exploitation except to the extent it is non-taxable under section 17 of the Finance Act 2001 (FA 2001). These are known as non-taxable aggregates.

Non-taxable aggregate

Aggregate is non-taxable where it:

  1. is exempt under FA 2001, s 17

  2. has previously been used for construction purposes

  3. is, or derives from, any aggregate that has already been subjected to a charge to aggregates

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