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The UK government has received notification from the European Commission (EC) that it is to open a formal investigation relating to exemptions and reliefs within the aggregates levy.
The commission made it clear that some exemptions and reliefs do not contain state aid and the aggregates levy in itself does not constitute an unlawful state aid. The investigation has arisen as a result of a submission in 2002 from the British Aggregates Association (BAA) to the EC, arguing that the levy contained state aid.
The UK government has received notification from the European Commission (EC) that it is to open a formal investigation relating to exemptions and reliefs within the aggregates levy.
The commission made it clear that some exemptions and reliefs do not contain state aid and the aggregates levy in itself does not constitute an unlawful state aid. The investigation has arisen as a result of a submission in 2002 from the British Aggregates Association (BAA) to the EC, arguing that the levy contained state aid.
The commission decided not to raise objections, but the BAA’s objection was considered by the European courts following an appeal. The European General Court annulled the EC’s 2002 decision in March last year on the grounds the commission had not undertaken the required degree of scrutiny in making a ruling about whether or not the aggregates levy contained state aid.
Businesses registered for the levy and commercially exploiting aggregate in the UK have a continuing legal obligation to pay the levy due on their activities while the investigation is in progress. Details of the areas under investigations are contained in Revenue & Customs Brief 24/13.
