Summer Budget 2015: Aggregates Levy changes

The Aggregates Levy is a tax on sand, gravel and rock that’s either been dug from the ground, dredged from the sea in UK waters, or imported.

On 1 August 2013, the European Commission notified the UK of its decision to open a formal State Aid investigation. While this process continued, the Government was obliged to suspend the Aggregate Levy exemptions, exclusions and reliefs, which were under investigation. The required suspension was introduced from 1 April 2014.

On 27 March 2015, the EC gave State Aid approval to all of the UK’s Aggregates Levy exemptions, with the exception of shale aggregate in specific circumstances.

The government will now reinstate exemptions from the Aggregates Levy that were recently found to be lawful by the European Commission.

From 1 August 2015, businesses can stop paying tax on the exempted materials and can retrospectively reclaim tax paid on these since the exemptions were suspended on 1 April 2014.