Glossary · UK
What is Aggregates Levy?
A GBP 3.35 per tonne levy on the commercial exploitation of rock, sand or gravel quarried in the UK, introduced in 2002 to promote recycled aggregates.
Full Definition
The Aggregates Levy is a UK environmental tax introduced on 1 April 2002. It is charged at GBP 3.35 per tonne (2026/27) on the commercial exploitation of rock, sand or gravel that has been extracted or dredged in the UK. The levy is intended to reduce the environmental impact of quarrying and to encourage the use of recycled and secondary aggregates as alternatives to virgin material. The levy is charged at the point of first commercial exploitation -- typically when aggregate is sold, used in a construction process, or removed from the site for use. Businesses that extract or import aggregate must register with HMRC if they exploit more than a de minimis amount. A credit scheme (the Aggregates Levy Credit Scheme) was previously available in Northern Ireland but was suspended following a state aid investigation by the European Commission; alternative relief arrangements have since been put in place for Northern Ireland. Certain aggregates are exempt or relieved from the levy, including aggregate used in certain industrial and agricultural processes, pre-cast concrete products that are exported, and aggregate that is a by-product of other industrial processes (such as slate waste, china clay and ball clay in certain circumstances). Businesses can claim an exemption for aggregate that they return to the earth (backfilling). Returns and payments are made to HMRC quarterly.