The Instrument
The Policy Note states that under the 2024 Act the “commercial exploitation of a quantity of aggregate is taken to occur in Scotland” when—
the aggregate is located in Scotland when it is subject to exploitation, or
where the aggregate is subject to exploitation as a result of movement of aggregate to Scotland from a place in the UK or from UK waters.
Regulation 2 inserts a new subsection (9A) “into section 7 of the [2024] Act to provide that the exploitation of a quantity of aggregate is not to be taken to occur in Scotland if two cumulative conditions are met”—
any aggregate in respect to which there has been a previous occasion on which a charge to UK Aggregates Levy (“UKAL”) on that aggregate has arisen under the Finance Act 2001 and
where, in respect of at least some of the UKAL previously charged on that aggregate, there is or was no entitlement to a 100% UKAL tax credit.