If you apply an exempt process to aggregate
Find out when the Aggregates Levy does not apply to the intended products of an exempt process.
If you apply an exempt process to aggregate, the levy will not apply to the product you intend to produce. It may apply to the aggregate produced as a by-product of the process.
Exempt processes
The exempt processes are:
- creating any type of flat stone, by intentionally cutting or shaping stone to produce one or more flat surfaces after it’s been extracted
- producing lime or cement from limestone, or from limestone and anything else, including shale
- using shale for something other than construction purposes
- extracting or separating certain industrial minerals from other aggregate
You may have to pay the levy on waste and by-products from an exempt process if you commercially exploit them. This does not apply to material that is entirely processing waste from separating industrial minerals from aggregate after extraction.
China clay and ball clay are industrial minerals for which there is a specific exemption for waste (not including overburden) from extraction.
Extracting industrial minerals from aggregate
The industrial minerals are:
- anhydrite
- ball clay
- barytes
- china clay
- feldspar
- fireclay
- fluorspar
- fuller’s earth
- gems and semi-precious stones
- gypsum
- metal or metal ore
- muscovite
- perlite
- potash
- pumice
- rock phosphates
- sodium chloride
- talc
- vermiculite
If you only produce aggregate from extracting industrial minerals, you do not need to register for the levy, but you’ll need to tell HMRC.