Aggregates levy credit scheme
The aggregates levy credit scheme (ALCS) has been suspended with effect from 1 December 2010. This decision directly affects quarry operators in Northern Ireland who had previously been eligible for relief under this scheme.
The decision to suspend the ALCS in Northern Ireland stems from a recent EU General Court decision. The General Court decision was in response to action taken by the British Aggregates Association, which annulled the European Commission’s State aid approval of 2004 for the ALCS. Although HMRC and the Government had supported the scheme it would have been unlawful to continue to grant relief under the scheme as there has been no European Commission decision to approve the aid. Businesses using the scheme had benefited from an 80% relief in the amount paying an effective rate of £0.40 per tonne as opposed to the full rate of £2.00 per tonne.
HMRC have also recently published an updated frequently asked questions document concerning the aggregates levy. The FAQ has been updated to reflect the removal of the ALCS. The document also provides additional information on the aggregates levy, including details of how to register, which products are liable for the levy and details of exemptions.