Scotland Bill

62ZA: After Clause 36, insert the following new Clause— ““Aggregates levy (1) In Part 4A of the 1998 Act (as inserted by section 28), after Chapter 6 (inserted by section 36C) insert— ““CHAPTER 7 Aggregates Levy 80N Aggregates Levy (1) A levy charged on aggregate subjected to commercial exploitation is a devolved tax. (2) In this section ““aggregate”” means (subject to subsections 4 and 5 below)— (a) any rock, gravel or sand, together with whatever substances are for the time being incorporated in the rock, gravel or sand or naturally occur mixed with it, and (b) the spoil, waste, off-cuts and other by-products resulting from the application of any exempt process to any aggregate; but does not mean anything else resulting from the application of exempt process to any aggregate. (3) In this section any quantity of aggregate is, in relation to any occasion on which it is subjected to commercial exploitation, a quantity of taxable aggregate except to the extent that— (a) it is exempt under subsections 4 and 5; (b) it has previously been used for construction purposes (whether before or after the commencement date); (c) it is, or derives from, any aggregate that has already been subjected to a charge to aggregates levy in the United Kingdom; (d) it is aggregate that on the commencement date is on a site other than— (i) its originating site, or (ii) a site that is required to be registered under the name of a person who is the operator, or one of the operators, of that originating site. (4) Aggregate is exempt under this section if— (a) it consists wholly of aggregate won by being removed from the ground on the site of any building or proposed building in the course of excavations lawfully carried out— (i) in connection with the modification or erection of the building; and (ii) exclusively for the purpose of laying foundations or of laying any pipe or cable; (b) it consists wholly of aggregate won— (i) by being removed from the bed of any river, canal or watercourse (whether natural or artificial) or of any channel in or approach to any port or harbour (whether natural or artificial); and (ii) in the course of the carrying out of any dredging undertaken exclusively for the purpose of creating, restoring, improving or maintaining that river, canal, watercourse, channel or approach; (c) it consists wholly of aggregate won by being removed from the ground along the line or proposed line of any highway or proposed highway and in the course of excavations carried out— (i) for the purpose of improving or maintaining the highway or of constructing the proposed highway; and (ii) not for the purpose of extracting that aggregate; (d) it consists wholly of aggregate won by being removed from the ground along the line or proposed line of any railway, tramway or monorail or proposed railway, tramway or monorail and in the course of excavations carried out— (i) for the purpose of improving or maintaining the railway, tramway or monorail or of constructing the proposed railway, tramway or monorail; and (ii) not for the purpose of extracting that aggregate; (e) it consists wholly of the spoil, waste or other by-products, not including the overburden, resulting from the extraction or other separation from any quantity of aggregate of any china clay or ball clay; or (f) it consists wholly of the spoil from any process by which— (i) coal, lignite, slate or shale, or (ii) a substance listed in subsection 5(b) below, has been separated from other rock after being extracted or won with that other rock. (5) For the purposes of this Part a quantity of any aggregate shall be taken to be a quantity of aggregate that is exempt under this section if it consists wholly or mainly of any one or more of the following, or is part of anything so consisting, namely— (a) coal, lignite, slate or shale; (b) the spoil or waste from, or other by-products of— (i) any industrial combustion process, or (ii) the smelting or refining of metal; (c) the drill-cuttings resulting from any operations carried out in accordance with a licence granted under the Petroleum Act 1998; (d) anything resulting from works carried out in exercise of powers which are required to be exercised in accordance with, or are conferred by, provision made by or under the New Roads and Street Works Act 1991; or (e) clay, soil or vegetable or other organic matter. (6) For the purposes of subsection (3)(c) aggregate subjected to exploitation in Scotland is aggregate that has already been subjected to a charge to aggregates levy if, and only if— (a) there has been a previous occasion on which a charge to aggregates levy on that aggregate has arisen; and (b) at least some of the aggregates levy previously charged on that aggregate is either— (i) levy in respect of which there is or was no entitlement to a tax credit; or (ii) levy in respect of which any entitlement to a tax credit is or was an entitlement to a tax credit of an amount less than the amount of the levy charged on it. (7) For the purposes of subsection (5)(b) above, any credit the entitlement to which arises in a case which— (a) falls within section 30(1)(c) or 30A of the Finance Act 2001, and (b) is prescribed for the purposes of this subsection, shall be disregarded. (8) In this section— ““coal”” has the same meaning as in the Coal Industry Act 1994; ““highway”” includes any road within the meaning of the Roads (Scotland) Act 1984; ““exempt process”” means— (a) the cutting of any rock to produce (stone with one or more flat surfaces); (b) any process by which a relevant substance is extracted or otherwise separated (whether as part of the process of winning it from any land or otherwise) from any aggregate; (c) any process for the production of lime or cement from limestone or from limestone and (anything else); and ““relevant substance”” means any of the following— (a) anhydrite; (b) ball clay; (c) barytes; (d) china clay; (e) feldspar; (f) fireclay; (g) fluorspar; (h) fuller's earth; (i) gems and semi-precious stones; (j) gypsum; (k) any metal or the ore of any metal; (l) muscovite; (m) perlite; (n) potash; (o) pumice; (p) rock phosphates; (q) sodium chloride; (r) talc; or (s) vermiculite. (9) The Treasury may by order made by statutory instrument— (a) modify the list of relevant substances in subsection (8) above by adding any substance to that list or by removing any substance from it; and (b) make any such transitional provision in connection with the modification of that list under this subsection as they may think fit. (10) The Treasury shall not make an order under subsection (9) above by virtue of which any substance ceases to be a relevant substance unless a draft of the order has been laid before Parliament and approved by a resolution of the House of Commons. (11) A statutory instrument containing an order under subsection (9) above that has not had to be approved in draft for the purposes of subsection (10) above shall be subject to annulment in pursuance of a resolution of the House of Commons.”” (2) Duty may not be charged in accordance with the provision inserted by this section if the exploitation occurs before the date appointed under section (Disapplication of United Kingdom Aggregates Levy)(4).””