Part 2

AGGREGATES LEVY

Charging provisions

Commercial exploitation
19
1
For the purposes of 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) below;
b
it becomes subject to 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, in relation to any quantity of aggregate, 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 that originating site is also registered;
c
any site not falling within paragraph (a) or (b) above to which the quantity of aggregate had been removed for the purpose of having an exempt process applied to it on that site but at which no such process has been applied to it.
3
For the purposes of this Part the exploitation to which a quantity of aggregate is subjected shall be taken to be commercial exploitation if, and only if—
a
it is subjected to exploitation in the course or furtherance of a business carried on by the person, or one of the persons, responsible for subjecting it to exploitation;
b
the exploitation to which it is subjected does not consist in its removal from one registered site to another in a case where both sites are registered under the name of the same person;
c
the exploitation to which it is subjected does not consist in or require its removal to a registered site for the purpose of having an exempt process applied to it on that site;
d
the exploitation to which it is subjected does not consist in or require its removal to any premises for the purpose of having china clay or ball clay extracted or otherwise separated from it on that site; and
e
the exploitation to which it is subjected is not such that, as a result and without its being subjected to any process involving its being mixed with any other substance or material (apart from water), it again becomes part of the land at the original site by virtue of it being used for a purpose connected with winning aggregate or other minerals from the site.
3A
For the purposes of subsection (3)(a) above “
business
” includes any activity of a Government department, local authority or charity.
3B
For the purposes of subsection (3)(e), in relation to a quantity of aggregate, “
the original site
” means the site from which it was won.
4
Subsection (4A)
applies where, at the time when any aggregate is won from any site, a person (“
P
”) is in occupation for relevant purposes of—
a
that site, or
b
that site and other land.
4A
Where this subsection applies, so long as the site mentioned in
subsection (4)
, or that site and the other land, continue to be occupied by P for relevant purposes, subsection (3)(e) has effect as if—
a
(where relevant) the reference to the land at the original site included the other land, and
b
the words “by virtue of it being used for a purpose connected with winning aggregate or other minerals from the site” were omitted.
4B
For the purposes of subsections
(4)
and
(4A)
relevant purposes are—
a
the purposes of the carrying on of any agricultural business, or
b
the purposes of the carrying on of any forestry business or otherwise for the purposes of forestry.
5
For the purposes of this Part where a quantity of aggregate is subjected to exploitation, the exploitation shall be taken to be in England, Wales or Northern Ireland if, and only if, the aggregate is in England, Wales or Northern Ireland or United Kingdom waters when it is subjected to exploitation.
6
For the purposes of this section a quantity of aggregate becomes subject to an agreement to supply it to any person—
a
except to the extent that it is not separately identifiable at the time when the agreement is entered into, at that time; and
b
to that extent, at the time when it is appropriated to the agreement;
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 section a quantity of aggregate is mixed with a 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 England, Wales or Northern Ireland; and
b
the mixing takes place on a site which, in a case where it falls within subsection (2) above in relation to any part of the aggregate included in the mixture, so falls in relation to every part of it.
Words in s. 19(2)(b) substituted (retrospective to 1.4.2002) by 2002 c. 23, s. 132(3), Sch. 38 para. 5(2)
S. 19(3A) inserted (retrospective to 1.4.2002) by 2002 c. 23, s. 132(3), Sch. 38 para. 5(3)
S. 19(4)-(4B) substituted for s. 19(4) (in relation to aggregate won on or after 1.10.2023) by Finance (No. 2) Act 2023 (c. 30), s. 330(3)(c)(5)
Words in s. 19(3)(e) substituted (in relation to aggregate won on or after 1.10.2023) by Finance (No. 2) Act 2023 (c. 30), s. 330(3)(a)(5)
Words in s. 19(7)(a) substituted (with effect in accordance with s. 18(4) of the amending Act) by Scotland Act 2016 (c. 11), s. 72(3), Sch. 1 para. 3(3)
Words in s. 19(5) substituted (with effect in accordance with s. 18(4) of the amending Act) by Scotland Act 2016 (c. 11), s. 72(3), Sch. 1 para. 3(2)
S. 19(3B) inserted (in relation to aggregate won on or after 1.10.2023) by Finance (No. 2) Act 2023 (c. 30), s. 330(3)(b)(5)