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CLAUSE 19:
COMMERCIAL EXPLOITATION
SUMMARY
1.
This clause sets out the circumstances under which aggregate is subjected
to commercial exploitation and hence liable to aggregates levy.
DETAILS OF THE CLAUSE
2.
Subsection (1) sets out the only circumstances under which
a quantity of aggregate is subject to exploitation. These
are:
(a) its removal from a site (as set out in subsection
(2) below);
(b) it becomes
subject to an agreement to supply it to a person (as set out in
subsection (6) below);
(c) it
is used for construction purposes (as defined in clause 48 (2));
(d) it
is mixed with anything other than water - unless in permitted circumstances
(as set out in subsection (7) below).
3.
Subsection (2) describes the sites referred to in subsection
(1) above as:
(a) the originating site of the aggregate;
(b) another site
under the same registration as the originating site;
(c) a
site to which aggregate has been taken to have an exempt process
applied to it but, where, in the event, no such process was applied.
4.
Subsection (3) sets out the only circumstances under which
aggregate is subjected to commercial exploitation as:
(a) it is exploited in the course or furtherance of a
business carried out by the person responsible for its exploitation;
(b) its exploitation
does not involve its removal from one site to another where
both are under the same registration;
(c) its
exploitation does not involve its removal to a site for the
purpose of having an exempt process applied to it;
(d) its
exploitation does not involve the extraction of china clay
or ball clay;
(e) its
exploitation does not involve it becoming part of the land
from which it was won having been subjected to no process involving
its being mixed with anything other than water.
5.
Subsection (4) provides that any aggregate extracted from certain
sites on or adjacent to farm or forestry land (if under the same ownership
and occupation) and returned to the same land having been subjected
to no process involving it being mixed with anything other than water
shall not be deemed to be commercially exploited.
6.
Subsection (5) provides that when aggregate is subject to exploitation,
that exploitation shall be taken to be in the United Kingdom only
if the aggregate is physically located within the UK or its waters
at the time of exploitation.
7.
Subsection (6) provides that the time at which a quantity of
aggregate becomes subject to an agreement to supply it to any person
is:
(a) if and in so far as the aggregate is separately
identifiable at that time, the time when the agreement is entered
into and
(b) if and in
so far as it is not, the time at which it is allocated for onward
supply.
It
further provides that any change of circumstances surrounding a person’s
interest in or right over land shall not, of itself, give rise to
a supply of a quantity of aggregate.
8.
Subsection (7) provides that the term “permitted circumstances”
in relation to the mixing of aggregate means:
(a) that the aggregate in question is mixed only with
taxable aggregate which has not previously borne the levy; and
(b) that the
mixing takes place at a site which is either the originating site
of, or any other site falling within subsection (2) above, for all
of the aggregate which is being mixed.
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