PART 2Excise duties and other taxes
Aggregates levy
94Aggregates 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;
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;