Guidance

Exempt aggregate and reporting it to HMRC

Find out what is exempt from Aggregates Levy and if you need to report it to us.

From:
HM Revenue & Customs
Published
9 October 2020
Last updated
1 October 2023 — See all updates

If you commercially exploit only exempt aggregate you do not pay the levy and you do not need to register, but you may need to report this to us.

If you are registered for the levy you should put the tonnage of any exempt aggregate you commercially exploit on your return.

What aggregate is exempt

Material is exempt if it’s more than half:

  • clay, soil, vegetable or other organic matter

  • coal, lignite or slate

  • waste or by-products from an industrial combustion process or the smelting or refining of metal — such as industrial slag, pulverised fuel ash and used foundry sand

  • drill cuttings from oil exploration in UK waters and land drilling in the UK licensed under statutory powers

Material is exempt if it’s entirely:

  • china clay waste or ball clay waste (not including overburden)

  • processing waste from the separation of coal, lignite or slate from other aggregate after extraction

  • processing waste from the separation of certain industrial minerals from other aggregate after extraction

  • aggregate that is the result of dredging rivers, canals, watercourses or approaches to ports or harbours when this is exclusively to improve or maintain them
  • aggregate dug lawfully and unavoidably from 1 October 2023:
    • on the site of any existing or proposed structure, or infrastructure for transport or utilities to build, maintain or improve them
    • but not to obtain the aggregate itself

Exemptions that applied before 1 October 2023 only

Before 1 October 2023, aggregate was exempt when it was:

  • more than half material arising from street works, such as laying gas or water pipes, carried out under statutory powers
  • entirely material dug unavoidably along the line of a highway to construct, improve or maintain it, and not to obtain the aggregate itself
  • entirely material dug unavoidably along the line of a railway, monorail or tramway to construct, improve or maintain them, and not to obtain the aggregate itself
  • entirely material lawfully extracted from the site of a building to lay its foundations, pipes or cables

These 4 exemptions have been replaced with one for unavoidable aggregate resulting from work on transport or utilities infrastructure, or any other structure — see Material is exempt if it’s entirely.

If you mix taxable aggregate with exempt aggregate

If you mix taxable aggregate with exempt material such as industrial slag, the levy applies to the taxable aggregate at the time of mixing.

If you only commercially exploit exempt aggregate

You do not need to register for the levy if you only commercially exploit exempt aggregate. However, you must still tell HMRC if you commercially exploit the following types of exempt aggregate:

  • coal, lignite or slate
  • processing waste from the separation of coal, lignite or slate from other rock after extraction
  • processing waste from the separation of certain industrial minerals from other rock after extraction
  • china clay waste or ball clay waste (not including overburden)
  • clay

What you must report to HMRC

For each type of exempt aggregate you commercially exploit, you must tell us:

  • your business name, address and company registration number (if you have one)
  • the type of aggregate you commercially exploit, for example, coal
  • the date you began commercially exploiting the aggregate
  • the date you stopped commercially exploiting the aggregate and the total tonnage exploited (if applicable)
  • an estimate of the tonnage of the aggregate you will exploit in the next 12 months
  • the locations where you commercially exploit, or have commercially exploited the aggregate

When you must report it

You must tell HMRC within 3 months of starting to commercially exploit the aggregate.

If any of the details change, you must tell us no later than 4 weeks after the next 1 January following the change.

If you give us incorrect details, you must let us know as soon as you realise this.

If you do not give us this information you may be liable to a penalty.

Report to HMRC

You should send these details to [email protected].

In the subject line of your email put “Aggregates Levy — exempt aggregate notification”.

In the body of your email give your:

  • full name
  • contact details

Alternatively, you may post your details to:

HM Revenue and Customs
Environmental Taxes (Aggregates Levy)
Warkworth House
Room 3201
Benton Park View
Newcastle upon Tyne
NE98 1ZZ

Updates to this page

Published 9 October 2020
Last updated 1 October 2023 + show all updates

  1. Details of which exemptions have been replaced with a new exemption from 1 October 2023 have been added.

  2. As announced in March Spring Budget from 1 October 2023, some exemptions will be replaced with a new exemption.

  3. First published.

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