Finance Act 2001

19 Commercial exploitation U.K.

(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 [F1 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 site from which it was won.

[F2 (3A) For the purposes of subsection (3)(a) above “business” includes any activity of a Government department, local authority or charity.]

(4) Where, at the time when any aggregate is won from any site, the same person is in occupation of both—

(a) that site, and

(b) [F3 other land] which is occupied, together with that site—

(i) for the purposes of the carrying on of any agricultural business, or

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

subsection (3)(e) above shall have effect as if the reference to the land at the site from which the aggregate was won included the [F3 other land], so long as it and that site continue to be occupied by that person for such purposes.

(5) For the purposes of this Part where a quantity of aggregate is subjected to exploitation, the exploitation shall be taken to be in the United Kingdom if, and only if, the aggregate is in the United Kingdom 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 the United Kingdom; 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.

Textual Amendments

F1 Words in s. 19(2)(b) substituted (retrospective to 1.4.2002) by 2002 c. 23, s. 132(3), Sch. 38 para. 5(2)

F2 S. 19(3A) inserted (retrospective to 1.4.2002) by 2002 c. 23, s. 132(3), Sch. 38 para. 5(3)

F3 Words in s. 19(4) substituted (retrospective to 1.4.2002) by 2002 c. 23, s. 132(3), Sch. 38 para. 5(4)