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Aggregates levy
Aggregates levy explained
The levy is a tax on commercial exploitation of rock, sand and gravel. It applies to imported materials as well as quarrying and mining activities. It can also apply to construction activities where material is removed or moved around and reused on site. The current aggregates levy rate is £2.08 per tonne for the 2025/26 tax year. This is expected to increase in line with inflation from 1 April 2026.
Changes to aggregates levy
Two changes to the levy were implemented on 1 April 2023.
First, some aggregates levy exemptions were simplified. This means that unavoidable aggregate resulting from the construction or improvement of any structure or infrastructure related to transport or utilities is exempt.
Second, aggregate taken from a borrow pit and returned unmixed to the site it was from is only non-taxable if used for quarrying, mining, agriculture or forestry.
Support for your business
S&W’s specialist team have experience in all aspects of the aggregates levy. We help affected businesses understand the full impact of the levy, recent changes and how to manage them.
For more information about how we can help, contact one of our team today.
Frequently asked questions about the aggregates levy
What is a borrow pit?
A borrow pit is a common term for a small, local aggregate source, such as a small sand and gravel pit near or within a construction site. Borrow pits are often used in large infrastructure projects such as roads, railways, reservoirs, pipelines, and wind farms to reduce materials transport and the impact of traffic movements through local communities.
What aggregate is exempt from the aggregates levy?
Several aggregates are exempt from the levy, including clay, soil, organic or vegetable matter, material from dredging watercourses, drill cuttings, and aggregate removed from some construction sites.
The list of exemptions is vast. For full details, please refer to HMRC or contact our specialist aggregates levy team.
What reliefs are available on aggregates levy?
Some aggregate is eligible for tax relief:
- Where it is exported from the UK
- When it is treated as waste and disposed of
- Any used in a process exempt from the levy
- Aggregate in a specified industrial or agricultural process that is eligible for relief