Aggregates levy
Aggregates are materials that are frequently used in construction as a means of stabilising and reinforcement, typically in drainage applications and as base material under foundations and roads.
The aggregates levy is a UK tax on the commercial exploitation of certain types of aggregate. It was introduced to encourage the recycling of aggregate and is often a consideration in infrastructure and other civil engineering projects as well as the quarrying industry. In particular it applies to sand, gravel and rock that has been either:
- Dug from the ground.
- Dredged from the sea.
- Imported.
Businesses must register with HMRC if they exploit aggregate in the UK and must report the quantity of aggregate that has been produced or sold each quarter.
A flat tax of £2 per tonne of sand, gravel or rock has been applied at a frozen level since 2009, on 1 April 2024 the rate increased to £2.03 per tonne, and thereafter it will be subject to annual Retail Price Index (RPI) increases. Less is charged on smaller amounts, e.g. £1 per half-tonne, with the same tax still applied if aggregates are imported.
Tax relief may be available for aggregates that are exported or used in certain industrial or agricultural processes, or if the material is not actually used as aggregate. Materials such as soil, vegetation and other organic matter are also exempt.
For further information visit Aggregates Levy: detailed information and Environmental taxes, reliefs and schemes for businesses .
On 14 November 2023 the Scottish Government introduced and new Bill entitled 'The Aggregates Tax and Devolved Taxes Administration (Scotland) Bill' which will replace the UK Aggregates Levy in Scotland, stage 3 of the Bills progress ended on 1 October 2024.
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