HM Treasury has set 1 April 2026 as the day the UK Aggregates Levy is disapplied in Scotland under section 18 of the Scotland Act 2016. The appointed day regulations switch the levy off in Scotland so it applies only in England, Wales and Northern Ireland, enabling Scotland’s replacement regime to take effect. (gov.uk)
In practice, the change dovetails with the Scottish Government’s Scottish Aggregates Tax starting on 1 April 2026. Revenue Scotland will collect and manage the new tax, which replaces the UK levy for aggregate commercially exploited in Scotland. (revenue.scot)
The scope turns on “commercial exploitation”. Aggregate exploited in Scotland on or after 1 April 2026 falls outside the UK levy, while exploitation in the rest of the UK remains within Aggregates Levy. HMRC guidance sets out the events that count as commercial exploitation, including removal from site, supply, use for construction and mixing. (gov.uk)
Those affected include quarry operators and construction materials suppliers in Scotland, importers using aggregate in Scotland, and producers elsewhere in the UK who sell or deliver to Scottish customers. HMRC estimates around 150 registered businesses will be impacted, including cross‑border suppliers who must account for tax in the destination country. The measure is not expected to have an Exchequer impact. (gov.uk)
Where a rest‑of‑UK supplier sells or delivers aggregate to a Scottish customer, Scottish commercial exploitation can arise even without a Scottish presence. In that case the supplier must register with Revenue Scotland and file Scottish Aggregates Tax returns, with UK Aggregates Levy credits available to prevent double taxation where evidence of cross‑border movement is held. (revenue.scot)
The reverse position is also addressed. When aggregate moves from a Scottish producer to England, Wales or Northern Ireland, liability to Aggregates Levy arises on the movement, with exemptions designed so that material already taxed under the Scottish regime is not charged again under the UK levy. (gov.uk)
HMRC’s Revenue and Customs Brief 2 (2026) confirms the 1 April 2026 change and outlines operational steps for businesses, including deregistering from the UK levy where appropriate, completing returns spanning the change, and maintaining approved weighing and record‑keeping practices during transition. (gov.uk)
Operators should now enrol with Revenue Scotland, create a Scottish Electronic Tax System (SETS) account, and update systems, contracts and invoicing to separate Scottish Aggregates Tax and UK Aggregates Levy liabilities from 1 April. Revenue Scotland has opened enrolment and scheduled further technical guidance ahead of go‑live. (revenue.scot)
The policy stems from the Smith Commission’s 2014 recommendation and was legislated through the Scotland Act 2016. The Aggregates Tax and Devolved Taxes Administration (Scotland) Act received Royal Assent in November 2024, providing the framework for the devolved tax ahead of implementation on 1 April 2026. (gov.uk)