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November 20, 2023

Scotland Unveils Breakaway Aggregate Tax

Scotland Unveils Breakaway Aggregate Tax


In a move that signals a significant shift in taxation within the construction industry, the Scottish government has unveiled plans for a breakaway aggregate tax. The details of this groundbreaking reform are outlined in the Aggregates Tax and Devolved Taxes Administration (Scotland) Bill, recently introduced to the Scottish Parliament. If approved, this tax is slated to come into effect from April 1, 2026, replacing the existing UK aggregates levy.


The proposed tax represents a bold step by the Scottish National Party (SNP) government, utilising powers devolved under the Scotland Act 2016. The focus of the tax is on aggregates comprising freshly extracted rock, gravel, or sand. By introducing this measure, Scotland aims to have greater control over the taxation of construction aggregates, aligning with its commitment to devolved governance.

Key Details

The Aggregates Tax and Devolved Taxes Administration (Scotland) Bill outlines the specifics of the proposed tax on construction aggregates. It targets the sale or use of aggregates made up of freshly extracted rock, gravel, or sand. The proposed implementation date is set for April 1, 2026, pending approval by Members of the Scottish Parliament (MSPs).

Implications for the Industry

This breakaway aggregate tax has far-reaching implications for the construction industry operating within Scotland. If enacted, it would replace the existing UK aggregates levy, providing the Scottish government with greater autonomy over fiscal policies related to construction materials. Industry stakeholders will need to closely monitor the legislative process and prepare for potential changes in taxation dynamics.

Considerations for Businesses

Businesses involved in the extraction, sale, and use of construction aggregates in Scotland should carefully examine the proposed tax reforms. Understanding the implications and adapting strategies accordingly will be crucial for navigating the evolving fiscal landscape. The announcement also underscores the broader trend of devolved administrations taking more control over economic policies that directly impact regional industries.


Scotland's decision to introduce a breakaway aggregate tax marks a pivotal moment in the ongoing evolution of regional fiscal policies. The proposed reform showcases the commitment to devolved governance and the desire for greater control over taxation in the construction sector. As the legislation progresses through the parliamentary approval process, businesses and industry players should stay informed and be prepared for potential shifts in the taxation landscape, shaping the future of construction practices in Scotland.

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