Explainers

Scottish Aggregates Tax

The UK Aggregates Levy is a tax which applies to the commercial exploitation of crushed rock, sand, and gravel (‘aggregate’) in the UK, including in Scotland. ‘Commercial exploitation’ includes when aggregate is sold, moved, mixed with other products, or used in building, with some exceptions.

The Scotland Act 2016 gives the Scottish Parliament powers over the Aggregates Levy, but devolution was initially delayed due to a court case and subsequently by the UK review of the levy. The Scottish Parliament passed the Aggregates Tax and Devolved Taxes Administration (Scotland) Act 2024, after which the Scottish Government announced that it planned to introduce the devolved Scottish Aggregates Tax in April 2026.

In our Scotland’s Economic and Fiscal Forecasts Update – June 2025, we published our first full forecast of Scottish Aggregates Tax.