Breaking New Ground? Developing a Scottish tax to replace the UK Aggregates Levy: consultation

The Programme for Government 2022 to 2023 sets out a commitment to introduce a Scottish Aggregates Levy Bill. To help inform the Bill, this consultation invites views on how a new and distinctive Scottish aggregates tax, replacing the current UK levy, should be structured and operate.

Glossary of Terms


Defined in the Finance Act 2001 as "Any rock, gravel or sand, together with whatever substances are for the time being incorporated in the rock, gravel or sand or naturally occur mixed with it". Primarily used for bulk fill in construction.

Block Grant Adjustment


The Scottish Block Grant is calculated by the Barnett formula, but an adjustment is made to account for devolved revenues and responsibilities, in accordance with the Fiscal Framework Agreement.


An individual or organisation that negotiates the purchase or sale of items on behalf of another.

Circular Economy

In a circular economy, resources are kept in use for as long as possible, the maximum value is extracted from them whilst in use and then products and materials are recovered and regenerated at the end of each product's viable life cycle.

Commercial Exploitation

Defined in the Finance Act 2001 as considered to have occurred to aggregate when:

"it is subjected to exploitation in the course or furtherance of a business carried on by the person, or one of the persons, responsible for subjecting it to exploitation"

Construction and Demolition (C&D) Waste

Waste arising from construction and demolition activities, some of which may be able to be used again as recycled aggregate.

Dimension Stone

Dimension stone is natural stone or rock that has been selected and finished (e.g., trimmed, cut, drilled, ground, or other) to specific sizes or shapes.


Dredging is the process of removing materials from the bottom of bodies of water.

Finance Act 2001

An Act of the UK Parliament which established the UK Aggregates Levy.

HM Revenue and Customs (HMRC)

The UK's tax, payments and customs authority.


The layer of material beneath the surface which needs to be removed to extract the primary product.

Land and Buildings Transaction Tax (LBTT)

Land and Buildings Transaction Tax (LBTT) is a tax applied to purchases of land or property, both residential and non-residential, and to non-residential leases.


The material, which could include aggregate, on or near the surface. It needs to be removed in order to extract the material beneath which is the primary product.

Primary Aggregate

Naturally occurring aggregates which are being used as aggregate for the first time. Sometimes also referred to as fresh, new or virgin aggregate.


Quarrying is the process of removing rock, sand, gravel or other minerals from the ground in order to use them to produce materials for construction or other uses.

Recycled Aggregate

Recycled aggregates result from the processing of inorganic materials previously used in construction.

Registers of Scotland (RoS)

Registers of Scotland keeps public registers of land, property, and other legal documents in Scotland.

Revenue Scotland

Revenue Scotland is the tax authority with responsibility for the collection and management of Scotland's devolved taxes.

Revenue Scotland Tax Powers Act 2014

Makes provision for a Scottish Tax System to enable the collection and management of devolved tax.

It puts in place a statutory framework which applies to the devolved taxes and sets out in clear terms the relationship between the tax authority and taxpayers in Scotland, including the relevant powers, rights and duties.

Scotland Act 2016

The Scotland Act 2016 is an act of the UK Parliament devolving further powers to the Scottish Parliament.

The Act enacts recommendations of the Smith Commission.

Scottish Environment Protection Agency (SEPA)

The Scottish Environment Protection Agency is Scotland's principal environmental regulator.

Scottish Fiscal Framework Agreement

The Fiscal Framework agreement between the Scottish and UK Governments determines how the Scottish Government is funded, and underpins the powers set out in the Scotland Act 2016.

The Fiscal Framework is a transparent mechanism for adjusting the Block Grant to reflect devolved revenues and the transfer of responsibility for social security to the Scottish Government.

Scottish Landfill Tax (SLfT)

Scottish Landfill Tax is a devolved tax on the disposal of material to landfill.

Secondary Aggregate

Aggregates arising as a by-product of other quarrying, mining and industrial operations.

Smith Commission

The Smith Commission was convened in September 2014 and charged with reaching a cross-party agreement on the devolution of further powers to the Scottish Parliament. Lord Smith of Kelvin oversaw the process. The Smith Commission published its recommendations in November 2014.


Leftover material from quarrying or mining

Winning Aggregate

Aggregate can be "won" by quarrying, mining, digging, dredging or collecting aggregate that has been extracted before.



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