Aggregates Levy
Aggregates levy is a tax on the use of rock, sand, and gravel for commercial purposes like building roads and houses.
It aims to encourage greater use of recycled and alternative materials.
The levy is paid by quarry operators and importers of aggregates, and applies when aggregate is:
- removed from its original site or a connected site
- mixed with anything other than water
- used for construction purposes, or
- supplied to another person
Some exemptions apply.
The UK-wide Aggregates Levy currently applies in Scotland. Find out more about the UK Aggregates Levy including the current rates on the gov.uk website.
Developing a Scottish aggregates tax
The Scotland Act 2016 gives the Scottish Parliament the power to introduce a devolved levy on aggregates obtained in Scotland.
We are developing a Scottish Aggregates Tax which will replace the existing UK-wide levy in Scotland.
The Scottish Aggregates Tax and Devolved Taxes Administration (Scotland) Bill was introduced to the Scottish Parliament on 15 November 2023.
When it commences, the tax will increase the proportion of Scotland’s budget raised from Scottish taxes.
The UK levy will continue to apply until a Scottish replacement has been developed.
Aggregates Levy contribution to the Scottish economy
The Scottish Fiscal Commission produces estimates of the Scottish share of revenue from the UK Aggregates Levy.
Bills and Legislation
The Scotland Act 2016 gives the Scottish Parliament the power to introduce a devolved levy on aggregates obtained in Scotland.