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Aggregates levy is a tax on the commercial exploitation in the UK of rock, sand and gravel.
Aggregate is rock, gravel or sand and whatever substances are incorporated in it or naturally occur mixed with it. Spoil, waste, off cuts and by-products of certain processes are also aggregate. Further details are given in Notice AGL1.
The levy came into effect on 1 April 2002.
There is one rate of £2.00 per tonne. You will pay less on smaller quantities. For example, you would pay £1.00 on half a tonne.
A special scheme could be agreed between the registered person and HM Revenue & Customs.
You will need to register for the levy if you are responsible for exploiting or intend to exploit taxable aggregate in the UK for commercial reasons. Unlike VAT there is no minimum turnover of taxable product below which registration is not necessary.
Levy is not chargeable on the following materials:
Aggregate which is exported from the UK or used in a prescribed industrial or agricultural process (for example, silica sand used in glass manufacture) is relieved from the levy. When aggregate is relieved, any levy that has been accounted for on it can be reclaimed as a tax credit.
Taxable aggregate will become liable to the levy when it is commercially exploited. In practical terms, this means the earliest of:
Some materials will only be subject to commercial exploitation when these events happen specifically for use for construction purposes. Full details are given in Notice AGL1
You need to complete the 'Application for Registration' form AL1 and 'Site Detail' form AL1A. You may also need to complete other forms depending on the status of your business. The different forms are listed in Notice AGL 1 - Aggregates Levy.
You can get further information and copies of the forms from:
HM Revenue & Customs
Central Collection Unit (AL)
21 Victoria Avenue
Tel: 03000 592688
Fax: 03000 594273
Once you have registered we will send a return, usually every three months, for you to complete and send back with payment of any levy due.
You will need to keep the following records relating specifically to the levy:
You may also have to keep additional records if you are allowed to work out your levy using a special scheme, or you operate a specified method for calculating the weight of material.
We have produced two Public Notices covering various aspects of Aggregates Levy:
You can access these and other Public Notices within the Library area. If you are in any doubt or would like further help you can ring the Helpline on Tel 0300 200 3700.
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