Scottish Aggregates Tax - proposed administration regulations

Overview

This consultation seeks views on the proposed administration regulations for the Scottish Aggregates Tax (SAT). This will enable the Scottish Government to gain views from both the public and professional experts to inform the development of SAT policy in advance of the proposed introduction date of 1 April 2026.

The Aggregates Tax and Devolved Tax Administration (Scotland) Act 2024 (“the 2024 Act") provides for the key elements of a new devolved tax on the commercial exploitation of aggregates in Scotland - the Scottish Aggregates Tax (“SAT”). SAT will replace UK Aggregates Levy (UKAL) in Scotland. The Scottish Government’s intended introduction for SAT is 1 April 2026. This is subject to the successful introduction of secondary legislation in Scotland and UK Government legislation on UKAL.

To ensure the introduction and effective operation of SAT, secondary legislation is required. This will specify the administration requirements associated with the tax, alongside required changes to the Revenue Scotland and Tax Powers Act 2014 regulations and the First-tier Tribunal for Scotland Tax Chamber regulations.

The intent of these regulations is to deliver an operationally effective SAT and ensure that the tax operates effectively in relation to the wider devolved taxes legislative regime, as set out in the Revenue Scotland and Tax Powers Act 2014 (RSTPA).

This consultation will run for 8 weeks until 21 March 2025 and offers an opportunity to comment on the draft secondary legislation, to ensure that it achieves the policy intent and does not create unintended consequences. 

Views are also sought on a range of issues to inform relevant impact assessments and ensure that these are fully considered. Responses are encouraged from all interested parties.

The Scottish Government will carefully consider all responses to the consultation, prior to finalising decisions on legislation for introduction to the Scottish Parliament.

The consultation document details the proposed SAT administration regulations, and amendments required to the RSTPA to ensure that SAT can be introduced on 1 April 2026. This information is included in sections 2, and 3, respectively. The impact assessments considered as part of the secondary legislation are noted in section 4 of the document. Section 5 contains further information on how to respond to the consultation. A copy of the draft legislative provisions is contained in Annex A. A copy of the partial Business and Regulatory Impact Assessment (BRIA) is included in Annex B.

Please read the consultation paper. The consultation paper contains full background information for this consultation. You may find it useful to read or refer to while responding.

Why your views matter

This consultation offers an opportunity to comment on the draft secondary legislation for the Scottish Aggregates Tax, to ensure that it achieves the policy intent and does not create unintended consequences.

Views are also sought on a range of issues to inform relevant impact assessments and ensure that these are fully considered. Responses are encouraged from all interested parties.

The Scottish Government will carefully consider all responses to the consultation, prior to finalising decisions on legislation for introduction to the Scottish Parliament