Claim relief from Aggregates Levy for industrial and agricultural processes
Check when rock, sand and gravel used in industrial and agricultural processes are eligible for relief from Aggregates Levy.
You can claim relief on aggregate used in the following agricultural and industrial processes, if you have commercially exploited the aggregate and accounted for the levy to HMRC. You must have the right evidence to claim the relief.
Industrial processes reliefs
001 - Iron, steel and non-ferrous metal manufacture and smelting processing including foundry processes, investment casting, sinter plants and wire drawing
You can claim relief for any aggregate used in these processes.
002 - Alloying
You can claim relief for any aggregate used in alloying.
003 - Emission abatement for air, land and water
You can claim relief for any aggregate used in any process to reduce pollutant emissions.
Incineration of liquid wastes is covered in code 021 and flue gas desulphurisation and scrubbing is covered in code 033.
004 - Drinking water, air and oil filtration and purification
For example, you can claim relief for aggregate used to:
- produce drinking water (filtration)
- soften hard water
005 - Sewage treatment
You can claim relief for aggregate used to treat sewage, for both:
- primary treatment
- secondary treatment
006 - Production of energy
You can claim relief for aggregate used in the production of energy such as silica sand or dolomite used in boilers.
007 - Ceramic processes
You can claim relief for aggregate used in ceramic processes, including the production of:
- pottery and porcelain
- bricks
008 - Refractory processes
You can claim relief for aggregate used in refractory processes in a number of industries, including:
- power generation
- cement
- petrochemicals
- glass making
- waste incineration
- metal industries
009 - Manufacture of glass and glass products
You can claim relief for silica sand and calcium carbonate used in glass manufacture.
010 - Manufacture of fibre glass
The use of aggregate in this process is mainly in the making of the glass itself but it may qualify for relief if used later on, such as in the shaping of the fibres.
011 - Manufacture of man-made fibres
You can claim relief for any aggregate used in this process.
012 - Production and processing of food and drink, for example, sugar refining, production of gelatin
Aggregate may be used as an ingredient or in preserving or purifying.
You can claim relief on aggregate used in pet food manufacture under this code.
013 - Manufacture of plastics, rubber and PVC
For example, calcium carbonate compounded with polymers.
014 - Chemical manufacturing for example soda ash, sea water magnesia, alumina
This can also cover sodium silicate manufacture.
015 - Manufacture of precipitated calcium carbonate
You can claim relief on any aggregate used in this process.
016 - Manufacture of pharmaceuticals, bleaches, toiletries and detergents
For example, calcium carbonate and silica.
017 - Aerating processes
For example, aerating of concrete. Aggregate used to provide bulk in concrete, rather than in an aerating process, is not relieved.
Aerating of lawns is not eligible for relief, unless it falls within one of the agricultural processes.
018 - Manufacture of fillers for coating, sealants, adhesives, paints, grouts, mastics, putties and other binding or modifying media
You can only claim this relief if you manufacture filler for the products mentioned in the relief and not any other products.
If you use aggregate to make a filler which you then supply to a customer who uses it in the manufacture of these products, you must get evidence of this use from your customer before claiming the relief.
019 - Manufacture of pigments, varnishes and inks
You can claim relief for any aggregate used in the manufacture of these products.
020 - Production of growing media and line markings for sports pitches and other leisure facilities
Any aggregate used in a growing medium for sports and leisure purposes is relieved under this code.
A growing medium must be produced by mixing the aggregate with soil or with other substances. Sand or gravel in its natural state is not eligible for relief as a growing medium.
Any aggregate, usually calcium carbonate in the form of lime or chalk, used for line markings on sports pitches is relieved under this code.
Growing media used for commercial horticultural purposes, for example, growing of flowers or fruit should be claimed under code 044.
021 - Incineration
You can claim relief for any aggregate used in incineration processes.
022 - Manufacture of desiccant
For example, sand and quartz used to make silica gel.
023 - Manufacture of carpet backing, underlay and foam
Ground silica and calcium carbonate may be used as fillers in carpet backing and underlay.
024 - Resin processes
You can claim relief for aggregate added to resin.
025 - Manufacture of lubricant additives
You can claim relief for any aggregate, such as lime, used in the manufacture of lubricant additives.
026 - Leather tanning
You can claim relief on any aggregate used in leather tanning.
027 - Paper manufacture
You can claim relief on any aggregate used in paper manufacture.
028 - Production of art materials
Aggregate materials used to produce art, for example, sculpture, would be relieved under this code.
The production of art materials includes the manufacture of:
029 - Production of play sand, for example, for children’s sand pits
Sand must be marketed, packaged and used as play sand to be eligible for relief.
030 - Clay pigeon manufacture
You can claim relief for any aggregate used in clay pigeon manufacture.
031 - Abrasive processes: specialist sand blasting, iron free grinding (pebble mills) and sandpaper manufacture
You can claim relief for any aggregate used in these processes.
032 - Use as a propping agent in oil exploration, for example, fracture sands and drilling fluids
You can claim relief on aggregate used as a propping agent in oil exploration, for example, fracture sands and drilling fluids.
033 - Flue gas desulphurisation and flue gas scrubbing
You can claim relief for any aggregate used in these processes.
034 - Manufacture of mine suppressant
For example, calcium carbonate or dolomite used to suppress explosions.
035 - Manufacture of fire extinguishers
You can claim relief for any aggregate used to make these extinguishing materials, for example, sand and calcium carbonate.
036 - Manufacture of materials used for fireproofing
You can claim relief for any aggregate materials used in fireproofing.
037 - Acid neutralisation
You can claim relief on aggregate that is used industrially, specifically for its alkaline properties, such as lime hydrate and calcium carbonate.
Agricultural use must be claimed under code 039.
038 - Manufacture of friction materials, for example, automotive
You can claim relief for aggregate used to make parts such as brakes and clutches.
You cannot claim relief for sand used in its natural state, for example on a railway track.
Agricultural processes reliefs
039 - Manufacture of additives to soil, for example, agricultural lime
You can claim relief for calcium carbonate that’s crushed into, and used as, agricultural lime.
You cannot claim relief if an identical product is used as bedding for pipes and cables in the construction industry.
You should claim relief for aggregate used in compost mixtures under industrial relief code 020 or code 044.
040 - Manufacture of animal feeds
You can claim relief for aggregate used in agricultural animal feed, for example, poultry feed.
You should claim relief for aggregate used in pet food under code 012.
041 - Production of animal bedding material
This will include bedding for cows, pigs, poultry and for horses where they’re reared and kept on farms for agricultural purposes.
You cannot claim relief for aggregate used as bedding for:
- racehorses
- zoo animals
- safari park animals
These are not an agricultural use.
Gravel or rock may also be relieved when used in fish farming.
042 - Production of fertiliser
You can claim relief when aggregate is used to produce fertiliser for agricultural purposes.
043 - Manufacture of pesticides and herbicides
You can claim relief when aggregate is used to manufacture pesticides and herbicides.
044 - Production of growing media, including compost, for agricultural and horticultural use only
You can claim relief on aggregate mixed with something else to produce a growing medium that’s used in agriculture or commercial horticulture.
The mixing process may happen before delivery to the site where it’s used or it may happen at the site itself.
You cannot claim relief for unmixed sand used as a growing medium as it is not the result of a process.
For production of growing media for sports pitches and other leisure facilities, including compost for use in domestic gardens, use code 020.
045 - Soil treatment, including mineral enrichment and reduction of acidity
You can claim relief on sand which has enough organic content to be spread on soil and used in place of agricultural lime.
You should not claim relief for agricultural lime which is made from limestone under this code. Instead claim under code 039.