The Scotland Act 2016, Section 18 (Disapplication of UK Aggregates Levy) (Appointed Day) Regulations 2026

These Regulations, made by HM Treasury, formally establish 1st April 2026 as the appointed day for the commencement of amendments made under Section 18 and Schedule 1 of the Scotland Act 2016, which will stop applying the UK Aggregates Levy to the commercial exploitation of aggregate occurring within Scotland on or after that date.

Arguments For

  • Implementing a key devolution commitment by transferring authority over the aggregates levy to the Scottish Parliament, fulfilling the intent of the Scotland Act 2016.

  • Providing financial and legislative certainty for businesses operating in Scotland by clearly defining the date when the existing UK levy ceases to apply there.

  • Aligning the removal of the UK levy with the Scottish Government's expected timetable for introducing any devolved equivalent environmental taxation measures.

Arguments Against

  • Potential for short-term administrative complexity for operators managing aggregate extraction across the Scotland/England border immediately following the appointed day.

  • Risk of revenue loss or fiscal gap for the UK Treasury in the interim if a replacement Scottish levy framework faces delays in implementation.

  • Concerns regarding harmonization of environmental standards relating to aggregate extraction if the Scottish tax model differs significantly from the previous UK system.

STATUTORY INSTRUMENTS

2026 No. 355 AGGREGATES LEVY

The Scotland Act 2016, Section 18 (Disapplication of UK Aggregates Levy) (Appointed Day) Regulations 2026

Made - - - -

23rd March 2026

The Treasury make these Regulations in exercise of the power conferred by section 18(4) of the Scotland Act 2016( 1 ).

Citation

  1. These Regulations may be cited as the Scotland Act 2016, Section 18 (Disapplication of UK Aggregates Levy) (Appointed Day) Regulations 2026.

Appointed Day

  1. 1st April 2026 is the day appointed for the purposes of section 18(4) of the Scotland Act 2016 (disapplication of UK aggregates levy).

23rd March 2026

Taiwo Owatemi Christian Wakeford Two of the Lords Commissioners of His Majesty's Treasury

EXPLANATORY NOTE

(This note is not part of the Regulations)

1st April 2026 is the day appointed by these Regulations under section 18(4) of the Scotland Act 2016 as when the amendments made under section 18(3), and Schedule 1 to, the Scotland Act 2016 come into effect. These amendments will disapply UK aggregates levy to Scotland in relation to commercial exploitation of aggregate which takes place on or after that date.

A Tax Information and Impact Note has not been prepared for this instrument as it gives effect to previously announced policy and it is appointed day regulations.

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