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Aggregates levy and laying underground utility pipes

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HMRC is consulting on options for introducing an aggregates levy exemption for all of the aggregate extracted as a result of utility companies laying underground pipes. The current exemption is limited to aggregate extracted from a specific site, or from under streets or roads, but not for adjoining areas. This responds to specific representations from the water industry, although the government announced at Budget 2016 its intention to consult on an exemption covering all underground utility connections.

The proposed options are:

·        Extend the existing exemptions: This would include work which continues beyond the footprint of the street or road when that work is carried out alongside work under streets as a single operation under a single contract. A further amendment might be necessary to exempt all aggregate extracted in laying pipes and cables between buildings to the main supply pipes of these utilities.

·        New exemption: This would remove from the aggregates levy all aggregate extracted when laying all utility pipes.

·        No change to the existing exemptions.

The closing date for responses is 18 October 2016. See

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