This newly published brief announces the suspension of the Northern Ireland Aggregates Levy Credit Scheme with effect from 1 December 2010.

Operators in Northern Ireland who have been eligible for relief under this scheme will have to pay the full rate of Aggregate Levy of £2.00 per tonne on the supplies they make from 1 December 2010.

This action results from a European General Court ruling, in response to action taken by the British Aggregates Association, which annulled the European Commission's State aid approval of 2004 for the Aggregates Levy Credit Scheme.

As there has been no Commission decision to approve the aid; continuing to grant relief under the scheme is unlawful and increases the risk of the Commission taking recovery proceedings against those benefiting from the scheme. Therefore the scheme is being suspended from 1 December 2010.

The date of 1 December 2010 was chosen as it achieves early compliance with the Court's judgment while giving the industry fair and reasonable notice.

Brief 42/10 is available at http://www.hmrc.gov.uk/briefs/excise-duty/brief4210.htm