Aggregates levy - industrial and agricultural processes relief

By Tolley

The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Aggregates levy - industrial and agricultural processes relief
  • Prescribed processes
  • Evidence
  • Claiming relief

Businesses that are involved in certain types of industrial and agricultural processes can obtain relief from the payment of aggregates levy providing they meet certain conditions. This note should be read in conjunction with the Introduction to Aggregates Levy, Aggregates Levy - exemptions and Aggregates levy - errors and penalties guidance notes.

Also more information on the processes can be found in HMRC Notice AGL 2 .

Please note that all references within this guidance note are subscription sensitive.

Prescribed processes

Businesses that undertake certain prescribed processes can obtain relief, in the form of a credit or repayment of aggregates levy if an amount of aggregate has been commercially exploited and the aggregates have been used for a prescribed end use. Please see the List of industrial and agricultural processes guidance note for a list of the relevant uses.

Aggregates Levy (General) Regulations 2002 ; FA 2001, ss 16–49, Schs 4–10; Aggregates Levy (General) (Amendment) Regulations 2003 ; Excise Notice AGL1: Aggregates Levy ; De Voils V22.100 (subscription sensitive)

If the material that is being supplied is not going to be used as aggregate, then it may be possible for the supply to be exempted from aggregates levy. Suppliers need to ascertain whether the supply is going to be used for a prescribed end process before refraining from charging the levy. Suitable evidence needs to be retained. See below for more information.

Please note that if the material being supplied is not included on the list provided, then it may still be possible for the goods to take advantage of this relief providing the goods are being used for one of the prescribed processes mentioned.

FA 2001, s 30(1)(c)
VAT treatment of filler used in the manufacture of asphalt

HMRC has released Revenue and Customs Brief 20 (2015)  which provides clarification on HMRC’s policy

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