Commentary

V22.106 Commercial exploitation

Part V22 Aggregates levy

V22.106 Commercial exploitation

V22.106 Commercial exploitation

Exploitation

The law provides that the majority of aggregate be subjected to exploitation if, and only if it:

  1.  

    •     is removed from

  2.  
    1.  

      (a)     its originating site

    2.  

      (b)     a site registered under the same person as its originating site, or

    3.  

      (c)     a site to which it was removed for the purpose of having an exempt process1 applied to it but at which no such process has been applied, or

  3.  

    •     becomes subject to an agreement to supply it to any person, or

  4.  

    •     is used for construction purposes, or

  5.  

    •     is mixed, other than in permitted circumstances, with any material or substance other than water2

In addition, the exploitation must take place within the UK or UK waters in order to have the potential to come within the scope of the levy. For aggregates levy purposes the UK included UK waters designated under the Continental Shelf Act 1964, s 1(7). This does not preclude aggregate extracted in another country but imported into the UK from being subject to the levy, as the exploitation will be deemed to take place on the first commercial exploitation of such aggregate3.

Following the EU Commissions notification to the UK Government that an investigation would be undertaken to determine whether certain exemptions were compliant with the State Aid rules, the definition of commercial exploitation was changed between 1 April 2014 and 27 March 2015 to include the following materials:

  1.  

    •     material that is more than half clay, coal, ignite, slate or shale

  2.  

    •     other

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