Aggregates levy water discount simplified

ON 1 July 2005 a new simplified option was introduced for firms wishing to claim an aggregates levy discount if water is added to sand, gravel or rock to clean unwanted dust, clay or mud from their saleable products.

Until now, any firm claiming a levy discount has had to prove to HM Revenue & Customs (HMRC) that the addition of water was happening on a regular basis, often entailing complex and expensive weighing of samples both before and after washing.

Identifying this as an additional burden on business, particularly where this procedure is carried out solely because of aggregates levy regulations, HMRC has introduced the following standard added-water percentage discounts that businesses can opt to use instead, thus eliminating the need for regular sampling: washed sand: 7%; washed gravel: 3.5%; and washed rock/aggregate: 4%.

Any business that wishes to continue to provide evidence of a more exact percentage of added water will still be able to do so, but whichever option is chosen written agreement will first need to be obtained from the local aggregates levy officer.

For further information contact HM Revenue & Customs’ National Advice Service on tel: (0845) 010 9000.