Supporting Net Zero In Construction In Scotland Tax Change

2nd October 2024

A new Scottish tax aimed at encouraging the use of recycled materials in construction has been approved unanimously by the Scottish Parliament.

The Aggregates Tax and Devolved Taxes Administration (Scotland) Bill will replace the UK Aggregates Levy and tax the sale or use of aggregates consisting of freshly extracted rock, gravel or sand.

Public Finance Minister Ivan McKee said, "By encouraging the use of recycled materials in aggregates across a range of construction-related activities, the Aggregates Tax Bill supports the Scottish Government's ambitions for a fair, green and growing economy.

"It has been informed by extensive engagement with the aggregates industry and others, and I look forward to continuing this positive relationship as we prepare to introduce the Scottish Aggregates Tax."

The price of construction aggregates have increased significantly in the United Kingdom in 2022. Prices of bituminous mixtures based on natural and artificial stone grew at a slower rate until 2021, after which a significant growth rate in prices was observed in 2022. The price of gravel, sand, clay, and kaolin, including levy in 2022 was nearly 53 percent higher than in 2015.

Who is likely to be affected
Businesses in the UK who quarry, dredge or import rock, sand or gravel (aggregates).

Aggregates Tax and Devolved Taxes Administration