Aggregates Tax and Devolved Taxes Administration (Scotland) Act 2024

Prospective

Commercial exploitation of aggregate S

7 Commercial exploitation S

(1) In this Part a quantity of aggregate is subjected to exploitation if and only if—

(a) it is removed from a site falling within subsection (2),

(b) it becomes the subject of an agreement to supply it to any person,

(c) it is used for construction purposes, or

(d) it is mixed, otherwise than in permitted circumstances, with any material or substance (other than water).

(2) The sites which fall within this subsection are—

(a) the originating site of the aggregate,

(b) any site which is not the originating site of the aggregate but is registered under the name of a person under whose name the originating site is also registered,

(c) any site not falling within paragraph (a) or (b) to which the quantity of aggregate had been removed for the purpose of having an excepted process applied to it on that site, but at which no such process has been applied to it.

(3) In this Part a quantity of aggregate is subjected to commercial exploitation if and only if its exploitation is carried out in the course or furtherance of a business carried on by a person responsible for subjecting it to exploitation (and for the purposes of this subsection “business” includes any activity of the Scottish Administration, a Minister of the Crown, local authority or charity).

(4) But a quantity of aggregate is not subjected to commercial exploitation if its exploitation—

(a) consists in the removal of aggregate from one registered site to another, where both sites are registered under the name of the same person,

(b) consists in or requires the removal of aggregate to a registered site for the purpose of having an excepted process applied to it on that site,

(c) consists in or requires the removal of aggregate to any site for the purpose of having china clay or ball clay extracted or otherwise separated from it on that site, or

(d) has the result that—

(i) without it being subjected to any process involving it being mixed with any other substance or material (other than water), and

(ii) by virtue of it being used for a purpose connected with winning aggregate or other minerals from that site,

it again becomes part of the land at the site from which it was won.

(5) For the purposes of subsection (1)(b), the time when a quantity of aggregate becomes the subject of an agreement to supply it to any person is—

(a) when the agreement is entered into, or

(b) in a case where the quantity of aggregate is not separately identifiable when the agreement is entered into, the time when it is appropriated to the agreement.

(6) But references in this Part to the supply of a quantity of aggregate do not include references to any supply which is effected, or is to be effected, by the transfer or creation of any interest or right in or over land.

(7) For the purposes of this Part, a quantity of aggregate is mixed with any material or substance in permitted circumstances if—

(a) the material or substance with which it is mixed consists wholly of a quantity of taxable aggregate that has not previously been subjected to commercial exploitation in Scotland, and

(b) the mixing takes place on a site which, in a case where it falls within subsection (2) in relation to any part of the aggregate included in the mixture, falls within subsection (2) in relation to every part of it.

(8) For the purposes of this Part, the commercial exploitation of a quantity of aggregate is taken to occur in Scotland if—

(a) the aggregate is in Scotland at the time when it is subjected to exploitation, or

(b) subsection (9) applies.

(9) This subsection applies where a quantity of aggregate is subjected to exploitation under subsection (1)(a) or (b) as a result of the movement of aggregate to Scotland from a place in the rest of the United Kingdom or from United Kingdom waters.

(10) The Scottish Ministers may by regulations modify this Part so as to make further provision about the circumstances in which the exploitation of a quantity of aggregate is taken to occur in Scotland for the purposes of subsection (8).

(11) Subsection (12) applies where, at the time when any aggregate is won from any site, a person (“P”) is in occupation of that site, or both that site and other land, for the purposes of—

(a) the carrying on of any agricultural business, or

(b) the carrying on of any forestry business, or otherwise for the purposes of forestry.

(12) Where this subsection applies, subsection (4)(d) has effect as if—

(a) (where relevant) the reference to the land at the site from which the aggregate was won included P’s other land, and

(b) the words “by virtue of it being used for a purpose connected with winning aggregate or other minerals from that site” were omitted.

Commencement Information

I1 S. 7 not in force at Royal Assent, see s. 64(2)

8 Persons liable to pay tax S

(1) The persons liable to pay the tax charged on a quantity of taxable aggregate are the persons responsible for subjecting it to commercial exploitation.

(2) For the purposes of subsection (1), the persons responsible are each of the following—

(a) in a case of the commercial exploitation of a quantity of aggregate by its removal from its originating site or from a connected site, the operator of that site,

(b) in a case of the commercial exploitation of a quantity of aggregate by its removal from a site falling within section 7(2)(c), the operator of the site and (if different) the owner of the aggregate at the time when the removal takes place,

(c) in a case of the commercial exploitation of a quantity of aggregate at a time when it is not on its originating site or a connected site—

(i) by its becoming the subject of any agreement to supply it, or

(ii) by its being used at such a time for construction purposes,

the person agreeing to supply it or using it for construction purposes,

(d) in a case of the commercial exploitation of a quantity of aggregate at a time when it is on its originating site or a connected site—

(i) by its becoming the subject of any agreement to supply it, or

(ii) by its being used at such a time for construction purposes,

the person mentioned in paragraph (c) and (if different) the operator of that site,

(e) in a case of the commercial exploitation of a quantity of aggregate by its being mixed with any material or substance at its originating site or a connected site, the owner of the aggregate at the time when the mixing takes place and (if different) the operator of the site,

(f) in a case of the commercial exploitation of a quantity of aggregate by its being mixed with any material or substance at premises that are not comprised in its originating site or a connected site, the owner of the aggregate at the time when the mixing takes place and the occupier of the premises where it takes place.

(3) A person who is responsible for subjecting a quantity of aggregate to exploitation is not responsible for subjecting it to commercial exploitation unless that takes place in the course or furtherance of a business carried on by that person (and for the purposes of this subsection “business” includes any activity of the Scottish Administration, a Minister of the Crown, local authority or charity).

(4) In this section “connected site”, in relation to any quantity of aggregate, means any site that falls within section 7(2)(b) in relation to that quantity of aggregate.

(5) Where—

(a) the commercial exploitation of a quantity of aggregate occurs by its becoming the subject of an agreement to supply it, and

(b) a person (“P”) is one of multiple persons involved in the chain of supply that arises from that original agreement (whether or not the chain of supply involves further agreements between the persons involved),

P is liable to pay the total amount of tax chargeable on the quantity of aggregate as a result of the original agreement, unless P has acquired the quantity of aggregate from a person who, at the time of P’s acquisition of the aggregate, is registered.

(6) Where by virtue of this section more than one person is charged with the tax, their liabilities under this Part as persons charged with the tax are joint and several.

Commencement Information

I2 S. 8 not in force at Royal Assent, see s. 64(2)