Measure
Following consultation in Spring 2021, on 20 July 2022 the government released draft legislation that proposed changes to how Aggregates Levy applies to aggregate won in the course of construction. The proposed changes have two components: the restriction of a specific exemption that applies to aggregate returned to the originating site from which it was won (with the notable effect of excluding aggregate won from borrow pits from the exemption); and the creation of a new exemption that will apply to aggregate arising unavoidably as a by-product of construction.
Businesses that are registered for Aggregates Levy, and other parties in the supply chain that bear the tax as a cost under their contractual arrangements.
The government originally intended for the updated legislation to take effect from 1 April 2023 but, following the Spring Budget 2023, the changes will now take effect on 1 October 2023.
Affected taxpayers will likely welcome the deferral of the changes given the additional time this will grant them to review and understand the proposals. The delay will also give them more time to consider the impact to any projects that they are undertaking or expect to undertake that make assumptions about Aggregates Levy, and to take steps to ensure that any additional costs or tax savings accrue to the right parties in their supply chains.