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 gave the Scottish Parliament the power to introduce a devolved tax on the commercial exploitation of aggregates in Scotland.
We are developing a Scottish Aggregates Tax which will replace the existing UK-wide levy in Scotland.
The Scottish Aggregates Tax, along with other measures, will support the Scottish Government's circular economy goals. It will encourage the minimum use of primary aggregates and maximise the use of recycled and secondary alternatives.
The Scottish Aggregates Tax and Devolved Taxes Administration (Scotland) Bill was introduced to the Scottish Parliament in November 2023, and approved by the Scottish Parliament in October 2024. The Bill received Royal Assent and became an Act of the Scottish Parliament on 12 November 2024. See: Aggregates Tax and Devolved Taxes Administration (Scotland) Act 2024.
The UK Aggregates Levy will continue to apply until the Scottish Aggregates Tax commences. The Scottish Aggregates Tax is planned to go live on 1 April 2026.
When the Scottish Aggregates Tax is introduced, it will increase the number of devolved taxes, and the proportion of Scotland’s budget raised from Scottish taxes.
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 gave the Scottish Parliament the power to introduce a devolved tax on the commercial exploitation of aggregates in Scotland.
See: Aggregates Tax and Devolved Taxes Administration (Scotland) Bill (including the Bill as passed, and the Act).