Aggregates Levy Changes

This is a briefing note produced by CECA (Civil Engineering Contractors Association) regarding the changes to the aggregates levy:


The Aggregates Levy was introduced to encourage the use of recycled aggregates. Clay was exempt from the tax along with other industrial by-products. Because of an EU Commission State aid investigation into certain aggregates levy exemptions, the exemption for clay has been suspended and became a taxable aggregate from 1st April 2014.

Both HMRC and the Environment Agency have given advice relating to site won material and how the exemptions would apply.

CECA members have asked for clarification around a number of different scenarios from HMRC in order that they are aware of their financial and legal obligations under the Levy. CECA members also raised specific questions around the application of the Levy.

These queries were presented to an HMRC specialist environmental tax advisor who in turn has verified their response with their department head. HMRC have also stated that the answers to CECA’s questions should be viewed on the basis that they are founded on the information provided and are not necessarily ‘rulings’ that can apply in every case. They also state that there may be factors in any of the individual scenarios presented, which were not explained and which might materially change the liability.

CECA Briefing Note_May 2014