Aggregates levy
Produced in partnership with Begonia Filgueira FIEMA of Acuity Legal
Aggregates levy

The following Environment practice note produced in partnership with Begonia Filgueira FIEMA of Acuity Legal provides comprehensive and up to date legal information covering:

  • Aggregates levy
  • What is the aggregates levy?
  • When does the levy apply?
  • Meaning of taxable aggregate
  • Aggregate
  • Taxable aggregate
  • Non-taxable aggregate
  • Exempt materials
  • European Commission Decision on State aid—shale
  • Exempt processes
  • More...

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 levy

  4. is on a site other than its originating site, or on a site that is required to be registered under the name of a person who is the operator, or one of the operators, of that originating site

The HMRC Guidance Note contains further guidance on non-taxable aggregates.

Exempt materials

Materials are exempt where they are wholly made up of aggregate that is:

  1. removed from the ground on the site of any building or proposed building in the course of excavations

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