Finance Act 2001
What this means for your business
- Enforced by
- Mining Remediation Authority, National Highways, Natural England
- Applies to
- United Kingdom
- On this page
- 12 compliance obligations, 1 practical guide
What you must do
12 compliance obligations under this legislation — 1 can result in imprisonment.
Management duties 1
Ensure non‑resident client complies with UK tax obligations
If you act as a tax representative for a non‑resident client, you must make sure they meet all their UK tax duties – both past and future – and pay any liabilities. You are personally responsible if they fail to comply, and you can be jointly liable with the client for any breach.
Payments and fees 3
Pay aggregates levy and file returns on time
If your business extracts or supplies aggregates you must submit the required levy return for each accounting period and pay the assessed levy by the due date. Late returns or payments will attract interest and the Crown can assess additional amounts if you default.
Pay the aggregates levy when you exploit aggregate
If your business removes, mixes, supplies or uses aggregate (sand, gravel, crushed rock, etc.) you become liable to pay the aggregates levy. The person who does the exploitation – whether you are the site operator, the owner of the material, the supplier or the occupier of the mixing premises – must ensure the levy is accounted for and paid to HM Revenue & Customs.
Repay any overpaid aggregates levy
If your business has paid the aggregates levy when you weren’t actually liable for it, you must pay the amount back. To get a refund you first need to submit a claim to the Commissioners in the format they require.
Offences and prohibitions 2
Fail to provide required security for aggregates levy
Unlimited fineIf your business extracts, processes or supplies aggregates and HM Revenue & Customs (the Commissioners) tell you to give security for the aggregates levy, you must do so. Failing to provide that security when required is a criminal offence. On summary conviction you face an unlimited fine (level 5 on the standard scale) but no custodial sentence.
Fraudulent evasion of aggregates levy
14 years imprisonmentIf you deliberately help yourself or another party avoid paying the aggregates levy, or claim a tax credit or repayment you’re not entitled to, you commit a criminal offence. The offence applies whether you personally evade the charge or facilitate someone else’s evasion. On conviction you can be fined without limit and face up to 14 years in prison.
Registration and licensing 1
Register for the aggregates levy
If your business extracts, processes or stores aggregates (sand, gravel, rock etc.) in England, Wales or Northern Ireland and you are responsible for that activity, you must be entered on the aggregates‑levy register unless a specific exemption applies. Your site may also need to be recorded as a registered site for levy purposes.
Reporting and filing 5
Accept HMRC review offers and request out‑of‑time reviews promptly
If HMRC offers you a review of a tax decision, you must accept it within the time HMRC specifies. If you miss that deadline, you can still ask HMRC to review the decision – but only if you had a reasonable excuse for the delay and you apply for the review promptly after that excuse ends.
Accept HMRC review offer within 30 days
If HMRC tells you it will re‑examine a tax decision, you must reply and say you accept the review within 30 days. If you fail to do so, HMRC can ignore the offer and keep its original decision.
Claim stamp duty exemption for disadvantaged area land
When you buy land that is officially in a disadvantaged area, you can avoid paying stamp duty on the transaction. To do this you must prove the land meets the criteria and submit that proof with your stamp‑duty return. The exemption is a benefit, not a penalty, so the main task is keeping the right evidence and filing it correctly.
Provide information certificates to policy holders and HMRC after chargeable events
If a life policy, annuity or capital‑redemption policy you issued experiences a chargeable event – for example an assignment of the whole rights or a gain that is more than half the basic‑rate limit – you must send a certificate with detailed tax information to the policy holder and, where required, to the tax inspector within three months. The certificate must contain the policy’s reference, details of the event, the amount of gain and other figures needed to work out the tax liability.
Respond to HMRC tax review and provide representations
If HMRC decides to review a tax decision that was made about your business, you must give them any relevant information or arguments within a reasonable period. HMRC will then decide whether to keep, change or cancel the original decision and must send you a written notice within 45 days (or a period agreed with you).
Penalties for non-compliance
2 penalties under this legislation. 1 can result in imprisonment. 2 carry an unlimited fine.
Fraudulent evasion of aggregates levy
Unlimited fine and/or 14 years imprisonment
Fail to provide required security for aggregates levy
Unlimited fine
Practical guidance
Our guides explain how to comply with the requirements above.
Sections and provisions
156 classified provisions from this legislation.
Duties 10
- Schedule 5 AGGREGATES LEVY: RECOVERY AND INTEREST the assessment
- s.22 Responsibility for exploitation of aggregate
- s.24 The register Commissioners
- s.31 Repayments of overpaid levy amount paid
- s.34 Effect of appointment of tax representatives obligation or liability
- s.40F Nature of review etc person in seeking
- s.40C Review by HMRC HMRC
- s.40E Review out of time HMRC
- s.92 Stamp duty: exemption for land in disadvantaged areas
- Schedule 28 LIFE POLICIES, LIFE ANNUITIES AND CAPITAL REDEMPTION POLICIES body
Offences and penalties 2
Powers 15
- Schedule 8 AGGREGATES LEVY: REPAYMENTS AND CREDITS
- s.8 Threshold for reduced general rate
- s.18 Exempt processes
- s.23 Weight of aggregate
- s.25 Returns and payment of levy
- s.30A Transitional tax credit in Northern Ireland
- s.30C Special tax credit: applicable rate of interest
- s.30 Credit for aggregates levy
- s.33 Appointment of tax representatives
- s.36 Partnerships and other unincorporated bodies
- s.38 Death and incapacity
- s.39 Transfer of a business as a going concern
- s.40D Extensions of time
- s.91 Power to revise excessive penalties
- s.99 VAT: re-enactment of reduced-rate provisions
Definitions 17
- s.3 Fuel-testing pilot projects experimental fuel excise duty fuel-testing project
- Schedule 9 AGGREGATES LEVY: GROUP TREATMENT
- s.16 Charge to aggregates levy the commencement date
- s.17 Meanings of “aggregate” and “taxable aggregate” aggregate
- s.19 Commercial exploitation the original site
- s.21 Operators of sites
- Schedule 25 LIMITED LIABILITY PARTNERSHIPS: INVESTMENT LLPS AND PROPERTY INVESTMETN LLPS property investment LLP
- s.48 Interpretation of Part accounting period agricultural appeal tribunal
- s.96 VAT : children’s car seats safety seat booster seat booster cushion
- s.100 VAT representatives VAT representative
- s.109 Interpretation the Taxes Act 1988
- Schedule 4 AGGREGATES LEVY: REGISTRATION
- Schedule 7 AGGREGATES LEVY: INFORMATION AND EVIDENCE ETC the appropriate judicial authority
- Schedule 22 REMEDIATION OF CONTAMINATED LAND
- Schedule 26 CAPITAL GAINS TAX: TAPER RELIEF: BUSINESS ASSETS
- Schedule 31 VALUE ADDED TAX: RE-ENACTMENT OF REDUCED RATE PROVISIONS fuel oil gas oil kerosene
- Schedule 32 PETROLEUM REVENUE TAX: UNRELIEVABLE FIELD LOSSES the loss-maker the old participator the new participator
Exemptions 11
- Schedule 1 GENERAL BETTING DUTY
- s.30B Special tax credit in Northern Ireland
- s.40A Offer of review
- s.45 Regulations and orders
- s.46 Civil penalties
- s.79 De-grouping charge: transitional relief
- s.87 Tax deductions and credits: end of provisional repayment regime
- s.95 Exemptions in relation to ... share incentive plans
- s.97 VAT: residential conversions and renovations
- Schedule 10 AGGREGATES LEVY: ASSESSMENT OF CIVIL PENALTIES AND INTEREST ON THEM
- Schedule 21 CAPITAL ALLOWANCES: MINOR AMENDMENTS