Industrial and agricultural processes

  1. Industrial processes tax credits
  2. Agricultural processes tax credits

Industrial processes tax credits

Process No. Process Details
1 Iron, steel and non-ferrous metal manufacture and smelting processing including foundry processes, investment casting, sinter plants and wire drawing You can claim a credit for any aggregate used in these processes.
2 Alloying You can claim a credit for any aggregate used in alloying.
3 Emission abatement for air, land and water

You can claim a credit for any aggregate used in any process to reduce pollutant emissions.

Incineration of liquid wastes is covered in Process No. 21 and flue gas desulphurisation and scrubbing is covered in Process No. 33.
4

Drinking water, air and oil filtration and purification

 

For example, you can claim a credit for aggregate used to:

  • produce drinking water (filtration)
  • soften hard water
5 Sewage treatment

You can claim a credit for aggregate used to treat sewage, for both:

  • primary treatment
  • secondary treatment
6

Production of energy

 

 You can claim a credit for aggregate used in the production of energy such as silica sand or dolomite used in boilers.
7 Ceramic processes

You can claim a credit for aggregate used in ceramic processes, including the production of:

  • pottery and porcelain
  • bricks
8 Refractory processes

You can claim a credit for aggregate used in refractory processes in a number of industries, including:

  • power generation
  • cement
  • petrochemicals
  • glass making
  • waste incineration
  • metal industries
9 Manufacture of glass and glass products You can claim a credit for silica sand and calcium carbonate used in glass manufacture.
10 Manufacture of fibre glass The use of aggregate in this process is mainly in the making of the glass itself but it may qualify for a credit if used later on, such as in the shaping of the fibres.
11 Manufacture of man-made fibres You can claim a credit for any aggregate used in this process.
12 Production and processing of food and drink, for example, sugar refining, production of gelatine

Aggregate may be used as an ingredient or in preserving or purifying.

You can claim a credit on aggregate used in pet food manufacture under this Process (No. 12).
13 Manufacture of plastics, rubber and PVC For example, calcium carbonate compounded with polymers.
14 Chemical manufacturing for example soda ash, sea water magnesia, alumina This can also cover sodium silicate manufacture.
15 Manufacture of precipitated calcium carbonate You can claim a credit on any aggregate used in this process.
16 Manufacture of pharmaceuticals, bleaches, toiletries and detergents For example, calcium carbonate and silica.
17 Aerating processes

For example, aerating of concrete. Aggregate used to provide bulk in concrete, rather than in an aerating process, is not relieved.

Aerating of lawns is not eligible for a credit, unless it falls within one of the agricultural processes.
18

Manufacture of fillers for coating, sealants, adhesives, paints, grouts, mastics, putties and 

other binding or modifying media

You can only claim this credit if you manufacture filler for the products mentioned in the credit and not any other products.

If you use aggregate to make a filler which you then supply to a customer who uses it in the manufacture of these products, you must get evidence of this use from your customer before claiming the credit.
19 Manufacture of pigments, varnishes and inks You can claim a credit for any aggregate used in the manufacture of these products.
20 Production of growing media and line markings for sports pitches and other leisure facilities

Any aggregate used in a growing medium for sports and leisure purposes is relieved under this Process (No. 20).

A growing medium must be produced by mixing the aggregate with soil or with other substances. Sand or gravel in its natural state is not eligible for a credit as a growing medium.

Any aggregate, usually calcium carbonate in the form of lime or chalk, used for line markings on sports pitches is relieved under this Process (No. 20).

Growing media used for commercial horticultural purposes, for example, growing of flowers or fruit should be claimed under Process No. 44.
21 Incineration You can claim a credit for any aggregate used in incineration processes.
22 Manufacture of desiccant For example, sand and quartz used to make silica gel.
23 Manufacture of carpet backing, underlay and foam Ground silica and calcium carbonate may be used as fillers in carpet backing and underlay.
24 Resin processes You can claim a credit for aggregate added to resin.
25

Manufacture of lubricant additives

 

 You can claim a credit for any aggregate, such as lime, used in the manufacture of lubricant additives.
26 Leather tanning You can claim a credit on any aggregate used in leather tanning.
27 Paper manufacture You can claim a credit on any aggregate used in paper manufacture.
28 Production of art materials

Aggregate materials used to produce art, for example, sculpture, would be relieved under this Process (No. 28).

The production of art materials includes the manufacture of:

  • paints - see Process No. 18
  • pigments and ink - see Process No. 19
  • paper - see Process No. 27
29 Production of play sand, for example, for children’s sand pits Sand must be marketed, packaged and used as play sand to be eligible for a credit.
30 Clay pigeon manufacture You can claim a credit for any aggregate used in clay pigeon manufacture.
31 Abrasive processes: specialist sand blasting, iron free grinding (pebble mills) and sandpaper manufacture You can claim a credit for any aggregate used in these processes.
32 Use as a propping agent in oil exploration, for example, fracture sands and drilling fluids You can claim a credit on aggregate used as a propping agent in oil exploration, for example, fracture sands and drilling fluids.
33 Flue gas desulphurisation and flue gas scrubbing You can claim a credit for any aggregate used in these processes.
34 Manufacture of mine suppressant For example, calcium carbonate or dolomite used to suppress explosions.
35 Manufacture of fire extinguishers You can claim a credit for any aggregate used to make these extinguishing materials, for example, sand and calcium carbonate.
36 Manufacture of materials used for fireproofing You can claim a credit for any aggregate materials used in fireproofing.
37 Acid neutralisation

You can claim a credit on aggregate that is used industrially, specifically for its alkaline properties, such as lime hydrate and calcium carbonate.

Agricultural use must be claimed under Process No. 39.
38 Manufacture of friction materials, for example, automotive

You can claim a credit for aggregate used to make parts such as brakes and clutches.

You cannot claim credit for sand used in its natural state, for example on a railway track.

Agricultural processes tax credits

Process No. Process Details
39 Manufacture of additives to soil, for example, agricultural lime

You can claim a credit for calcium carbonate that’s crushed into, and used as, agricultural lime.

You cannot claim a credit if an identical product is used as bedding for pipes and cables in the construction industry.

You should claim a credit for aggregate used in compost mixtures under industrial credit Process No. 20 or Process No. 44.
40 Manufacture of animal feeds

You can claim a credit for aggregate used in agricultural animal feed, for example, poultry feed.

You should claim a credit for aggregate used in pet food under Process No. 12.
41 Production of animal bedding material

This will include bedding for cows, pigs, poultry and for horses where they’re reared and kept on farms for agricultural purposes.

You cannot claim a credit for aggregate used as bedding for:

  • racehorses
  • zoo animals
  • safari park animals
  • These are not an agricultural use.

Gravel or rock may also be relieved when used in fish farming.
42 Production of fertiliser You can claim a credit when aggregate is used to produce fertiliser for agricultural purposes.
43 Manufacture of pesticides and herbicides You can claim a credit when aggregate is used to manufacture pesticides and herbicides.
44 Production of growing media, including compost, for agricultural and horticultural use only

You can claim a credit on aggregate mixed with something else to produce a growing medium that’s used in agriculture or commercial horticulture.

The mixing process may happen before delivery to the site where it’s used or it may happen at the site itself.

You cannot claim a credit for unmixed sand used as a growing medium as it is not the result of a process.

For production of growing media for sports pitches and other leisure facilities, including compost for use in domestic gardens, use Process No. 20.
45 Soil treatment, including mineral enrichment and reduction of acidity

You can claim a credit on sand which has enough organic content to be spread on soil and used in place of agricultural lime.

You should not claim a credit for agricultural lime which is made from limestone under this Process (No. 45). Instead claim under Process No. 39.
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  • 22 December 2025, 16:42