HM Revenue and Customs Brief 21/12
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Issued 9 July 2012
Aggregates Levy: European General Court judgment
1. Purpose of this brief
This Brief provides details about the implications for the
Aggregates Levy of the March 2012 judgment of the European General
Court in the case of British Aggregates Association v the European
2. Who needs to read this?
Businesses registered for Aggregates Levy and their advisers.
3. European General Court judgment
In 2002 the British Aggregates Association submitted views to
the European Commission which challenged the introduction of the
Aggregates Levy by claiming that the levy contained unapproved and
unallowable State aid. The Commission decided not to object to the
levy, concluding that it did not contain any State aid other than the
credit scheme in Northern Ireland which it considered to be compatible
with the common market. The British Aggregates Association brought an
action in the European Courts for partial annulment of the Commissionís
decision and on 7 March 2012 the European General Court ruled that the
Commissionís original consideration of whether the levy contains State
aid was flawed, and annulled the Commissionís decision.
The Commission has decided not to appeal the judgment and it
will now need to make a reassessment of whether the levy contains any
State aid and, if so, whether it is compatible with their guidelines.
In the meantime, the judgment does not render the levy illegal, as it
did no more than annul the European Commissionís State aid assessment.
Although the levy remains under challenge in the UK Court of Appeal,
its legal basis was confirmed by a High Court Order made in 2002.
Accordingly, HMRC will continue to administer and collect the tax as
normal. There is no change to registered businessesí legal
responsibility to pay the levy. Where registered persons withhold
payment of the levy declared as due on their returns late/non-payment
penalties and penalty interest may become due.
4. Further information
If you have any questions about the issues arising from this
Brief, please phone the Environmental Taxes Unit of Expertise on Tel
0191 225 9584.
About the Author
© Crown Copyright 2012.
A licence is needed to reproduce this article and has been republished
for educational / informational purposes only. Article reproduced by
permission of HM Revenue & Customs.
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Article Published/Sorted/Amended on Scopulus 2012-07-13 11:24:01 in Tax Articles