home | news | site index

CLAUSE 17: MEANING OF AGGREGATE AND TAXABLE AGGREGATE

SUMMARY

1.         This clause defines aggregate and taxable aggregate.

DETAILS OF THE CLAUSE

2.         Subsection (1) defines aggregate, for the purposes of the levy,  as rock, gravel or sand together with any other substances incorporated in or naturally occurring with it.   

3.         Subsection (2) sets out the basic criteria for determining whether  a quantity of aggregate is or is not a quantity of taxable aggregate and provides that aggregate subjected to commercial exploitation shall be taxable aggregate except to the extent that:

(a)  it is specifically exempted;

(b) it has previously been used for construction purposes;

(c) it has previously borne aggregates levy;

(d) it was removed from its originating site before the commencement date.

4.         Subsection (3) sets out circumstances under which aggregate shall be exempt.  These are:

(a) it is rock which has not been crushed;

(b) it has necessarily arisen from the excavation of a building site;

(c) it has necessarily arisen from the dredging of navigation channels;

(d) it has necessarily arisen during the course of highway construction;

(e) it comprises of the waste from china and ball clay workings.

5.         Subsection (4) provides that certain types of material shall be exempt from the levy.  These are:

(a) coal, lignite, slate or shale;

(b) colliery spoil;

(c) by-products of industrial processes e.g. slag, pulverised fuel ash;

(d) drill cuttings arising from the continental shelf oil exploration;

(e) material arising from digging road trenches e.g. to lay gas pipes;

(f) clay, soil, vegetable or other organic matter.

6.         Subsection (5) sets out the circumstances under which a quantity of aggregate is deemed to have already been subject to a charge to aggregates levy.  These are:

(a) it has been previously charged with aggregates levy; and

(b) the previous charge has not been wholly credited.

7.         Subsection (6) further provides that, when considering whether the previous charge has been wholly credited, any credit which has been given on the basis that the aggregate has been  used in a prescribed agricultural or industrial process (see clause 30(1)(c)) is to be disregarded with the result that such aggregate shall not be subjected to further charge.

8.         Subsection (7)  defines “coal” and “highway”.