If you extract aggregates or your business is energy-intensive, you need to be aware of how the aggregates levy and climate change levy may affect your business.
Aggregates and mining
If you extract aggregates, you must register with HM Revenue & Customs (HMRC) and pay a levy, currently set at £2.00 per tonne. The aggregates levy is designed to minimise demand for primary aggregates and promote environmentally-friendly extraction techniques. Read more about Aggregates Levy.
However, you may be entitled to relief from the levy for aggregates not used for construction - known as industrial and agricultural processes relief.
Tax relief is also available for qualifying capital expenditure on mineral acquisition, access and exploration. Read about Mineral Extraction Allowance.
Relief is also available for aggregates exported outside the UK. Levy on imported aggregates is due not when it arrives in the UK but only when it is commercially exploited.
The climate change levy is a tax added to most energy costs used in industry. It applies to gas, electricity, coal and liquefied petroleum gas.
Energy-intensive businesses may benefit from a reduction in the climate change levy negotiated by their trade association. If you belong to one of these climate change agreements (CCA) you can get an 80 per cent discount on the tax, but you and your fellow members will have to reach set targets. Read our guide on cutting your carbon emissions.