Budget Notes

BN83 AGGREGATES LEVY: RATE

Who is likely to be affected?

1. Those commercially exploiting taxable aggregate in the UK.

General description of the measure

2. Legislation will be introduced in Finance Bill 2008 to increase the rate of aggregates levy from £1.95 per tonne to £2.00 per tonne.

Operative date

3. The new rate will have effect for any aggregate commercially exploited on or after 1 April 2009.

Current law and proposed revisions

4. Section 16(4) of the Finance Act 2001 specifies the rate of aggregates levy. This will be amended by Finance Bill 2008.

5. In Northern Ireland, registered operators in possession of a valid aggregates levy credit certificate will continue to be entitled to 80 per cent relief of the full levy rate. As a result of the rate increase, in effect, the amount of levy payable by such operators will increase from 39 to 40 pence per tonne.

Further advice

6. If you have any questions about this change, please contact the National Advice Service on 0845 010 9000. Information about Budget measures is available on the HM Revenue & Customs website at www.hmrc.gov.uk