Aggregates Levy: Water Content Rules Clarified

HM Customs & Excise have recently announced an amendment to the General Guide to the Aggregates Levy. This clarifies their policy regarding the allowance which is given for added water.

- The guidance sets out rules for a discount if aggregate has a water content, when determining how much levy is payable on commercial exploitation of aggregate.
- There is no allowance for naturally occurring water but there is an allowance for added water.
- However, where extensive washing of aggregate takes place, it is possible that the added water replaces some (or all) of the naturally occurring water.
- The policy is that the allowance is for added water over and above the quantity of naturally occurring water.
- Therefore the guidance has been amended to reflect that even if all the naturally occurring water has been replaced by added water, the amount for naturally occurring water must still be  subtracted from the total figure for water content and does not form part of the amount of the discount.  
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