ALSF Definitions
The definition of aggregates and the Levy
(1) In this Part references to aggregate-
The definition of the aggregates upon which the levy is made is provided by the Finance Act 2001
The Finance Act 2001 (Chapter 9)
The full text of the Finance Act 2001 (Chapter 9) is available from the HMSO at: www.hmso.gov.uk/acts/acts2001/20010009.htm
The key definition of the aggregates upon which the levy is being made are contained within the Finance Act 2001 (Chapter 9). This states:
17 Meanings of "aggregate" and "taxable aggregate"
(1) In this Part "aggregate" means (subject to section 18 below) any rock, gravel or sand, together with whatever substances are for the time being incorporated in the rock, gravel or sand or naturally occur mixed with it.
(2) For the purposes of this Part any quantity of aggregate is, in relation to any occasion on which it is subjected to commercial exploitation, a quantity of taxable aggregate except to the extent that-
(a) it is exempt under this section; (b) it has previously been used for construction purposes (whether before or after the commencement date); (c) it is, or derives from, any aggregate that has already been subjected to a charge to aggregates levy; (d) it is aggregate that was removed from its originating site before the commencement date.
(3) For the purposes of this Part aggregate is exempt under this section if-
(a) it is rock that has not been subjected to an industrial crushing process; (b) it consists wholly of aggregate won by being removed from the ground on the site of any building or proposed building in the course of excavations lawfully carried out-
(4) For the purposes of this Part a quantity of any aggregate shall be taken to be a quantity of aggregate that is exempt under this section if it consists wholly or mainly of any one or more of the following, or is part of anything so consisting, namely-
(i) in connection with the modification or erection of the building; and (ii) exclusively for the purpose of laying foundations or of laying any pipe or cable;
(c) it consists wholly of aggregate won-
(i) by being removed from the bed of any river, canal or watercourse (whether natural or artificial) or of any channel in or approach to any port or harbour (whether natural or artificial); and (ii) in the course of the carrying out of any dredging undertaken exclusively for the purpose of creating, restoring, improving or maintaining that river, canal, watercourse, channel or approach;
(d) it consists wholly of aggregate won by being removed from the ground along the line or proposed line of any highway or proposed highway and in the course of excavations carried out-
(i) for the purpose of improving or maintaining the highway or of constructing the proposed highway; and (ii) otherwise than wholly or mainly for the purpose of extracting that aggregate; or
(e) it consists wholly of the spoil, waste or other by-products resulting from the extraction or other separation from any quantity of aggregate of any china clay or ball clay. (a) coal, lignite, slate or shale; (b) the spoil from any process by which coal has been separated from other rock after being extracted or won with that other rock; (c) the spoil or waste from, or other by-products of-
(5) For the purposes of this section aggregate subjected to exploitation in the United Kingdom is aggregate that has already been subjected to a charge to aggregates levy if, and only if-
(i) any industrial combustion process, or (ii) the smelting or refining of metal;
(d) the drill-cuttings resulting from any operations carried out in accordance with a licence granted under the Petroleum Act 1998 (c. 17) otherwise than in relation to petroleum situated in the strata in Great Britain; (e) anything resulting from works carried out in exercise of powers which are required to be exercised in accordance with, or are conferred by, provision made by or under the New Roads and Street Works Act 1991 (c. 22), the Roads (Northern Ireland) Order 1993 (S.I. 1993/3160 (N.I. 15)) or the Street Works (Northern Ireland) Order 1995 (S.I. 1995/3210 (N.I. 19)); (f) clay, soil or vegetable or other organic matter. (a) there has been a previous occasion on which a charge to aggregates levy on that aggregate has arisen; and (b) at least some of the aggregates levy previously charged on that aggregate is either-
(6) For the purposes of subsection (5)(b) above, any credit the entitlement to which arises in a case which-
(i) levy in respect of which there is or was no entitlement to a tax credit; or (ii) levy in respect of which any entitlement to a tax credit is or was an entitlement to a tax credit of an amount less than the amount of the levy charged on it.
(a) falls within section 30(1)(c) below, and (b) is prescribed for the purposes of this subsection,shall be disregarded.
(7) In this section-
"coal" has the same meaning as in the Coal Industry Act 1994 (c. 21); and "highway" includes any road within the meaning of the Roads (Scotland) Act 1984 (c. 54) or the Road Traffic (Northern Ireland) Order 1995 (S.I. 1995/2994 (N.I. 18)).
18 Exempt processes
(1) In this Part references to aggregate-
(a) include references to the spoil, waste, off-cuts and other by-products resulting from the application of any exempt process to any aggregate; but (b) do not include references to anything else resulting from the application of any such process to any aggregate.
(2) In this Part "exempt process" means-
(a) the cutting of any rock to produce dimension stone; (b) any process by which a relevant substance is extracted or otherwise separated (whether as part of the process of winning it from any land or otherwise) from any aggregate; (c) any process for the production of lime or cement from limestone or from limestone and some other substance.
(3) In this section "relevant substance" means any of the following-
(a) anhydrite; (b) ball clay; (c) barytes; (d) calcite; (e) china clay; (f) feldspar; (g) fireclay; (h) flint; (i) fluorspar; (j) fuller's earth; (k) gems and semi-precious stones; (l) gypsum; (m) any metal or the ore of any metal; (n) muscovite; (o) perlite; (p) potash; (q) pumice; (r) rock phosphates; (s) sodium chloride; (t) talc; (u) vermiculite.
(4) The Treasury may by order made by statutory instrument-
(a) modify the list of substances in subsection (3) above by adding any substance to that list or by removing any substance from it; and (b) make any such transitional provision in connection with the modification of that list under this subsection as they may think fit.
(5) The Treasury shall not make an order under subsection (4) above by virtue of which any substance ceases to be a relevant substance unless a draft of the order has been laid before Parliament and approved by resolution of the House of Commons.
(6) A statutory instrument containing an order under subsection (4) above that has not had to be approved in draft for the purposes of subsection (5) above shall be subject to annulment in pursuance of a resolution of the House of Commons.
Customs & Excise definition of the Levy
A guide to the Levy, and what is covered by it, is available from HM Customs & Excise at: The main issues of definition are covered in their points 1.2 (What is an Aggregate?) and as modified by their point 3.2 (What materials are exempt from the levy?); which are reproduced below.1.2 What is aggregate? For the purposes of the levy aggregate is rock, gravel or sand, together with whatever substances are incorporated in the rock, gravel or sand or naturally occur mixed with it. This includes the spoil, waste, off cuts and other by-products arising from:
- the cutting of any rock to produce dimension or building stone;
- the process of extracting industrial minerals from aggregate;
- the production of lime or cement from limestone or from limestone and some other substance.
3.2 What materials are exempt from the levy? Anything that consists wholly or mainly of the following is exempt from the levy:
- clay, soil, vegetable or other organic matter;
- coal lignite, slate and shale;
- china clay waste and ball clay waste;
Please note that any overburden arising from the extraction of any of these materials or from the extraction of any industrial minerals will be taxable unless it is itself a specifically exempt material.
- colliery spoil;
- all spoil or waste from, or other by-products from any industrial combustion process or the smelting or refining of metal e.g. industrial slag, pulverised fuel ash and used foundry sand;
- drill cuttings from the seabed, i.e. beyond the low water mark, whether in the UK territorial waters or not [and from land drilling in the UK if licensed under the petroleum Act 1998]
- material arising from utility works e.g. laying gas or water pipes and telephone lines;
- aggregate arising from building sites. Material consisting wholly of aggregate arising from the site of any building or proposed building is exempt if lawfully extracted within the terms of any planning consent. To qualify for the exemption the aggregate must be removed in connection with the modification or erection of the building or laying of foundations and exclusively for the purpose of laying foundations or the laying of any pipe or cable;
- aggregate extracted as a result of navigation dredging. Material that consists wholly of aggregate removed from inland waterways and harbours by dredging is exempt. To qualify for the exemption, the material must be removed from the bed of any river, canal or watercourse (whether natural or artificial). (For the purposes of the exemption, the bed includes banks of canals and rivers). It may also be removed from any channel in or in the approach to any port or harbour (whether natural or artificial). It must have been dredged exclusively for the purpose of creating, restoring, improving or maintaining that river, canal, watercourse, channel or approach within the terms of any licence or other planning consent.
- aggregate necessarily arising from highway construction (excluding borrow pits). Material that consists wholly of aggregate arising from the ground in the course of excavations to improve, maintain or construct a highway or a proposed highway is exempt. To qualify for exemption the aggregate must be won from the ground along the line or proposed line of the highway. This includes the land take approved by the planning authority.
Email this to a friend