Aggregates Levy - introduction

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Contents

What is aggregates levy?

What do you mean by aggregate?

When did the levy come into effect?

What is the rate of levy?

How is weight calculated if there is no weighbridge?

Do I need to register for the levy?

What kinds of materials are not taxable?

What reliefs are available?

When does the liability to the levy arise?

How do I register?

How do I account for the levy?

What records will I need to keep?

Further help and information

 

What is aggregates levy?

Aggregates levy is a tax on the commercial exploitation in the UK of rock, sand and gravel.

What do you mean by aggregate?

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.

When did the levy come into effect?

The levy came into effect on 1 April 2002.

What is the rate of levy?

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.

How is weight calculated if there is no weighbridge?

A special scheme could be agreed between the registered person and HM Revenue & Customs.

Do I need to register for the levy?

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.

What kinds of materials are not taxable?

Levy is not chargeable on the following materials:

  • soil or vegetable or other organic matter
  • blocks of stone (dimension stone) and limestone for the production of lime or cement
  • clays and shale used to make ceramic construction products
  • gypsum and anhydrite used to make plaster, plasterboard or related products
  • waste that is wholly from industrial combustion processes or the smelting or refining of metals
  • drill cuttings (in permitted circumstances) and waste from certain processes such as highways or railways excavation, navigational dredging and building construction (in permitted circumstances)

What reliefs are available?

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.

When does the liability to the levy arise?

Taxable aggregate will become liable to the levy when it is commercially exploited. In practical terms, this means the earliest of:

  • physical removal from
    • its originating site
    • a connected site which is registered under the same name as the originating site
    • a site where it had been intended to apply an exempt process to it, but this process was not applied
  • agreeing to supply it to another person
  • use for construction purposes
  • mixing with anything other than water except in permitted circumstances

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

How do I register?

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)
Alexander House
21 Victoria Avenue
Southend-on-Sea X
SS99 1AS

Tel: 03000 592688
Fax: 03000 594273

How do I account for the levy?

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.

What records will I need to keep?

You will need to keep the following records relating specifically to the levy:

  • aggregates levy account
  • aggregates levy tax credits account
  • aggregates levy bad debt account
  • record of exempt aggregate
  • invoices

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.

Further help and information

We have produced two Public Notices covering various aspects of Aggregates Levy:

Notice AGL 1 - Aggregates Levy

Notice AGL 2 - Industrial and Agricultural Processes Relief

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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