The Aggregates Levy is relevant to quarry operators and other extractors of rock, sand and gravel, including operators of dredgers, importers of aggregate and others who commercially exploit aggregate as well as other businesses involved in the construction industry and users of minerals for agricultural and industrial purposes.
The Aggregates Levy is a tax on the commercial exploitation in the UK of rock, sand and gravel. The levy is charged at a flat rate of £2 per tonne and there are a number of exemptions and exclusions.
The European Commission recently opened a formal investigation into certain exemptions and reliefs allowed by the UK Government and whether these give rise to State Aid. Our Government is of the opinion that the exemptions, exclusions, and tax reliefs in question do not give rise to State Aid. However, under EU law the Government is obliged to act to suspend the application of those elements of the levy that now form the subject matter of the formal investigation.
In this regard, new legislation makes a number of administrative changes to the Aggregates Levy as a consequence of the suspension of certain levy exemptions on 1 April 2014.