Finance Act 2014

Aggregates levy

94 Aggregates levy: removal of certain exemptions

(1) FA 2001 is amended as follows.

(2) Section 17 (meaning of “aggregate” and “taxable aggregate”) is amended as follows.

(3) In subsection (3)—

(a) after paragraph (da) insert—

“(db) it consists wholly of the spoil or waste from, or other by-products of—

(i) any industrial combustion process, or

(ii) the smelting or refining of metal;”, and

(b) omit paragraphs (e) and (f).

(4) In subsection (4), omit—

(a) paragraphs (a) and (c), and

(b) in paragraph (f), “clay”.

(5) Section 18 (exempt processes) is amended as follows.

(6) In subsection (1)—

(a) in paragraph (a), for the words from “references” to “but” substitute “references to—

(i) the spoil, waste, off-cuts and other by-products resulting from the application of any exempt process to any aggregate, and

(ii) any relevant substance extracted or otherwise separated as a result of the application of any exempt process within subsection (2)(b) to any aggregate; but”, and

(b) in paragraph (b), for “such” substitute “exempt”.

(7) In subsection (2), after paragraph (c) insert—

“(d) the use of clay or shale in the production of ceramic construction products;

(e) the use of gypsum or anhydrite in the production of plaster, plasterboard or related products.”

(8) Section 19 (commercial exploitation) is amended as follows.

(9) In subsection (1), after “aggregate” insert “not falling within subsection (1B)”.

(10) After that subsection insert—

“(1A) For the purposes of this Part a quantity of aggregate falling within subsection (1B) is subjected to exploitation if, and only if—

(a) it is removed from a site falling within subsection (2) in a case where the person removing it intends that it should be used (by any person) for construction purposes;

(b) it becomes subject to an agreement to supply it to a person who intends that it should be used (by any person) for construction purposes;

(c) it is used for construction purposes; or

(d) it is mixed, otherwise than in permitted circumstances, with any material other than water for the purpose of its use for construction purposes.

(1B) A quantity of aggregate falls within this subsection if—

(a) it consists wholly of a relevant substance listed in section 18(3) which results from the application to any aggregate of an exempt process within section 18(2)(b);

(b) it consists mainly of the spoil or waste from, or other by-products of—

(i) any industrial combustion process, or

(ii) the smelting or refining of metal; or

(c) it consists wholly or mainly of clay, coal, lignite, slate or shale.”

(11) In section 22 (responsibility for exploitation of aggregate), in subsection (1) for paragraphs (c) and (d) substitute—

“(c) in the case of the exploitation of a quantity of aggregate not falling within section 19(1B) by its being subjected, at a time when it is not on its originating site or a connected site, to any agreement, the person agreeing to supply it;

(ca) in the case of the exploitation of a quantity of aggregate falling within section 19(1B) by its being subjected, at a time when it is not on its originating site or a connected site, to any agreement, the person agreeing to supply it and the person to whom it is agreed to be supplied;

(cb) in the case of the exploitation of a quantity of aggregate by its being used, at a time when it is not on its originating site or a connected site, for construction purposes, the person using it for construction purposes;

(cc) in the case of the exploitation of a quantity of aggregate not falling within section 19(1B) by its being subjected, at a time when it is on its originating site or a connected site, to any agreement, the person mentioned in paragraph (c) and (if different) the operator of that site;

(cd) in the case of the exploitation of a quantity of aggregate falling within section 19(1B) by its being subjected, at a time when it is on its originating site or a connected site, to any agreement, the persons mentioned in paragraph (ca) and (if different) the operator of that site;

(ce) in the case of the exploitation of a quantity of aggregate by its being used, at a time when it is on its originating site or a connected site, for construction purposes, the person mentioned in paragraph (cb) and (if different) the operator of that site;”.

(12) The amendments made by subsections (1) to (11) are treated as having come into force on 1 April 2014.

95 Aggregates levy: power to restore exemptions

(1) The Treasury may by order provide that Part 2 of FA 2001 (the aggregates levy) is to have effect subject to such amendments as the Treasury consider necessary to secure that any of the exemptions that are removed as a result of the amendments made by section 94 is to any extent restored.

(2) An order under this section—

(a) may provide for the restoration of an exemption to have effect in relation to commercial exploitation to which a quantity of aggregate is subjected on or after a day which is earlier than the day on which the order is made;

(b) may make such supplementary, incidental, consequential or transitional provision as the Treasury think fit.

(3) An order under this section is to be made by statutory instrument.

(4) A statutory instrument containing an order under this section is subject to annulment in pursuance of a resolution of the House of Commons.