Finance Act 2026

(c) it is a game of bingo in the United Kingdom, other than a game of unlicensed bingo where every person playing the game participates by use of— (i) the internet, (ii) telephone, (iii) television, (iv) radio, or (v) any other kind of electronic or other technology for facilitating communication,

• (b) after subsection (2) insert—

(3) In this section— - “bingo” includes any version of that game, whatever name it is called; - “unlicensed bingo”—in Great Britain, means bingo which is not played at premises licensed under a bingo premises licence (within the meaning of Part 8 of the Gambling Act 2005), andin Northern Ireland, means bingo played at premises licensed under Chapter 2 of Part 3 of the Betting, Gaming, Lotteries and Amusements (Northern Ireland) Order 1985;

8

In FA 1997—

• (a) in section 10 (gaming duty)—

• (i) in subsection (3AA)(a) omit “bingo duty or”;

• (ii) after subsection (3AA) insert—

(3AB) This section does not apply to the playing of bingo.

• (iii) after subsection (6) insert—

(7) In this section, “bingo” includes any version of that game, whatever name it is called.

• (b) in Schedule 1 (administration and enforcement of gaming duty), for paragraph 16 substitute—

(16) Where an officer of Revenue and Customs takes any action in pursuance of instructions of the Commissioners for His Majesty’s Revenue and Customs in connection with the enforcement of the enactments relating to gaming duty and, apart from this paragraph, the officer would in taking that action be committing an offence under the enactments relating to betting or gaming, the officer is not be guilty of that offence.

9

In FA 2003, omit section 9.

10

In FA 2006, in section 11, omit subsection (3).

11

In FA 2007, omit—

• (a) paragraph 4 of Schedule 1;

• (b) paragraph 9 of Schedule 25 (and the italic heading before it).

12

In FA 2008, in Schedule 41, in the Table in paragraph 1, omit the entry relating to “bingo duty”.

13

In FA 2009, omit—

• (a) section 20;

• (b) subsection (2) of section 115.

14

In the Borders, Citizenship and Immigration Act 2009, in section 7(2)(e), omit sub-paragraph (ii).

15

In FA 2010, omit section 19.

16

In FA 2012, in Schedule 24, in paragraph 3—

• (a) in sub-paragraph (1), for paragraph (b) substitute—

(b) it is a game of bingo in which two or more persons participate on the same premises,

• (b) after sub-paragraph (4) insert—

(5) In this paragraph, “bingo” includes any version of that game, whatever name it is called.

17

In FA 2014—

• (a) omit sections 122 and 123 (and the italic heading before section 122);

• (b) in section 154(4), omit paragraph (b) (and the “and” before it);

• (c) In section 161—

• (i) in subsection (3), omit paragraph (a) (and the “and” after it);

• (ii) in subsection (4), omit paragraph (b);

• (iii) after subsection (4) insert—

(4A) Remote gaming duty is not charged on a chargeable person’s participation in remote gaming where the remote gaming in question is the playing in the United Kingdom of a game of— (a) licensed bingo, or (b) unlicensed bingo, if at least one other person’s participation in the game does not constitute remote gaming. (4B) In subsection (4A)— - “bingo” includes any version of that game, whatever name it is called; - “licensed bingo”—in Great Britain, means bingo played at premises licensed under a bingo premises licence (within the meaning of Part 8 of the Gambling Act 2005), andin Northern Ireland, means bingo played at premises licensed under Chapter 2 of Part 3 of the Betting, Gaming, Lotteries and Amusements (Northern Ireland) Order 1985; - “United Kingdom” includes the territorial sea of the United Kingdom; - “unlicensed bingo” means bingo which is not licensed bingo.

• (d) in Schedule 28, in paragraph 20, omit sub-paragraph (3).

18

In FA 2016, in paragraph 4(2) of Schedule 18, omit “bingo duty”.

19

In F(No.2)A 2017, in paragraph 2(1) of Schedule 17, omit “bingo duty”.

20

In FA 2024, in the Table in section 32(1), omit the entry relating to “BGDA 1981”.

Transitional and saving provision

21

• (1) The repeals and amendments made by section 88 and this Schedule do not affect—

• (a) the operation on and after 1 April 2026 of any enactment repealed or amended by section 88 or this Schedule, or revoked by virtue of those repeals and amendments, as the enactment stood immediately before that date, so far as relating to accounting periods for bingo duty that end before that date;

• (b) the exercise on and after 1 April 2026 of any power of the Commissioners for His Majesty’s Revenue and Customs or an officer of Revenue and Customs saved by paragraph (a).

• (2) Sub-paragraph (1) does not prejudice the generality of section 16(1) of the Interpretation Act 1978.

Schedule 14 — Aggregates levy: amendments relating to disapplication of levy to Scotland

Amendments of Part 2 of FA 2001

1

Part 2 (aggregates levy) of FA 2001 is amended as follows.

2

Section 17 (exemption etc of quantity of aggregate) is amended as follows.

3

In subsection (2), after paragraph (c) insert—

(ca) it has on or after the day appointed under section 18(4) of the Scotland Act 2016 (and prior to being moved to England, Wales or Northern Ireland) been removed from a relevant Scottish site to premises in Scotland of a person carrying on a business in Scotland; (cb) it has— (i) on or after the day appointed under section 18(4) of the Scotland Act 2016 been removed from a site in England, Wales or Northern Ireland that falls within section 19(2) in relation to that quantity of aggregate, and (ii) subsequently been moved to premises in Scotland of a person carrying on a business in Scotland, prior to being moved to the place in England, Wales or Northern Ireland where it is subjected to commercial exploitation;

4

After subsection (3) insert—

(3A) In subsection (2)(ca) the reference to premises in Scotland does not include any premises located at a site that is a relevant Scottish site in relation to the quantity of aggregate.

5

In subsection (7), at the appropriate place insert—

• “relevant Scottish site”, in relation to a quantity of aggregate, means a site in Scotland that falls within section 19(2) in relation to that quantity of aggregate, or would so fall if in section 20(1)(a)—the reference to England, Wales or Northern Ireland included Scotland, andthe reference to relevant waters included Scottish waters.

6

Section 19 (commercial exploitation) is amended as follows.

7

In subsection (1)—

• (a) in paragraph (a), after “site” insert “in England, Wales or Northern Ireland”;

• (b) after paragraph (a) insert—

(aa) it is removed to a place in England, Wales or Northern Ireland from a site in Scotland that falls within subsection (2) below, or would fall within that subsection if in subsection (1)(a) of section 20 (originating sites)— (i) the reference to England, Wales or Northern Ireland included Scotland, and (ii) the reference to relevant waters were to United Kingdom waters.

8

In subsection (5)—

• (a) the words from “the aggregate” to the end become paragraph (a) of that subsection;

• (b) in that paragraph for “United Kingdom waters” substitute “relevant waters”;

• (c) at the end insert

, or (b) the exploitation falls within subsection (1)(aa).

9

After subsection (5) insert—

(5A) The Treasury may by regulations made by statutory instrument make further provision with regard to the circumstances in which the subjection of a quantity of aggregate to commercial exploitation is to be taken to occur in England, Wales or Northern Ireland, including provision amending this section or any other provision of this Part.

10

At the end insert—

(8) A statutory instrument containing regulations under subsection (5A) may not be made unless a draft of the instrument has been laid before and approved by a resolution of the House of Commons.

11

In section 20 (originating sites), in subsection (1)(a), for “United Kingdom waters” substitute “relevant waters”.

12

In section 48 (interpretation of Part), in subsection (1), at the appropriate places insert—

• “relevant waters” means—the territorial sea adjacent to the United Kingdom, other than Scottish waters, orany area designated by Order in Council under section 1(7) of the Continental Shelf Act 1964;

• “Scottish waters” means so much of the territorial sea adjacent to the United Kingdom as is to be treated as adjacent to Scotland for the purposes of the Scotland Act 1998 (see section 126(2) of that Act);

Amendments of Aggregates Levy (General) Regulations 2002

13

The Aggregates Levy (General) Regulations 2002 (S.I. 2002/761) are amended as follows.

14

In regulation 13 (which relates to tax credits)—

• (a) in paragraph (2), before sub-paragraph (a) insert—

(za) is moved without further processing from premises in England, Wales or Northern Ireland operated or used by a person registered under section 24 of the Act for any purpose specified in subsection (6) of that section to a place in Scotland or Scottish waters;

• (b) in paragraph (2)(a), after “Kingdom” insert “from a place in England, Wales or Northern Ireland”.

15

In consequence of the amendment made by paragraph 14(b), in regulation 15(3) after “United Kingdom” insert “from a place in England, Wales or Northern Ireland”.

Repeals: the levy register etc

16

In the Scotland Act 2016, in Schedule 1 (disapplication of UK aggregates levy)—

• (a) in paragraph 5 (amendments relating to the levy register), in sub-paragraph (3) for “both places,” substitute “the first place it occurs,”;

• (b) paragraph 9 (which amends the definition of “United Kingdom waters” for Part 2 of FA 2001) is omitted.

17

Omit—

• (a) section 44 of FA 2001 (destination of receipts), and

• (b) paragraph 8 of Schedule 1 to the Scotland Act 2016.

Commencement

18

Paragraphs 1 to 15 have effect in relation to commercial exploitation of aggregate which takes place on or after such date as is appointed under section 18(4) of the Scotland Act 2016.

19

Paragraphs 16 and 17 come into force on the day on which this Act is passed.

Schedule 15 — Vaping products duty: amendments of other enactments

Penalties

1

• (1) In paragraph 1 of Schedule 24 to FA 2007 (penalties for errors), in the table after the entry for tobacco products duty insert—

Vaping products duty	Vaping products duty return.

• (2) In paragraph 1 of Schedule 41 to FA 2008 (penalties for failure to notify etc), in the table after the entry for tobacco products duty insert—

Vaping products duty	Obligation not to produce vaping products unless approved or registered (in regulations under section 45 of TCTA 2018).
Vaping products duty	Obligation to produce vaping products only on approved or registered premises (in regulations under section 45 of TCTA 2018).
Vaping products duty	Obligation to be approved under section 122 of FA 2026 (approved stamp holders).

• (3) In paragraph 2 of Schedule 24 to FA 2021 (penalties for failure to make returns etc), in the table after item 4 and in the first, second and fifth columns insert—

5	Vaping products duty			Vaping products duty return under regulations under section 45 of TCTA 2018.

• (4) In paragraph 1 of Schedule 25 to FA 2021 (penalties for deliberately withholding information), in the table after item 4 insert—

5	Vaping products duty	Vaping products duty return under regulations under section 45 of TCTA 2018.

• (5) In paragraph 1 of Schedule 26 to FA 2021 (penalties for failure to pay tax), in the table at the end insert—

Vaping products duty	Vaping products duty	Vaping products duty
1	Amount of vaping products duty payable under Part 4 of FA 2026 (except an amount within item 2 or 3)	The date determined by or under regulations under section 45 of TCTA 2018 as the date by which the amount must be paid
2	Amount of vaping products duty shown in an assessment made by HMRC in default of a return	The date by which the amount would have been required to be paid if it had been shown in the return in question
3	Amount of vaping products duty shown in an amendment or correction of a return	The date falling 30 days after the date on which the amendment or correction is made

Reviews and appeals

2

FA 1994 is amended as follows—

• (a) in section 13A(2), after paragraph (gc) insert—

(gd) any decision by HMRC that a person is liable to a penalty, or as the amount of the person’s liability, under— (i) section 125 of FA 2026; (ii) section 126(1) of FA 2026;

• (b) in section 16(9), after paragraph (b) insert—

(ba) paragraph 5B;

• (c) in section 16A(2), after paragraph (g) insert—

(h) approved under section 122 of FA 2026 (approved stamp holders);

• (d) in Schedule 5 (decisions subject to review and appeal), after paragraph 5A insert—

(5B) Any decision as to whether or not any person is to be, or continues to be, approved under section 122 of FA 2026.

Other amendments

3

CEMA 1979 is amended as follows—

• (a) in section 1(1), in the definition of “the Customs and Excise Act 1979” after “(alcohol duty)” insert “and Part 4 of FA 2026 (vaping products duty)”;

• (b) in section 1(3) at end insert—

Part 4 of FA 2026 (vaping products duty)
“vaping products”

• (c) in section 112 (powers of entry upon premises, etc. of revenue traders)—

• (i) in subsection (3) after “alcoholic products” insert “or vaping products,”;

• (ii) in subsection (5) after “tobacco products” insert “or vaping products”;

• (d) in section 113(6) (power to search for concealed pipes, etc) after “alcoholic products” insert “or vaping products”;

• (e) in section 160(2A) (power to take samples) after “alcoholic products” insert “or vaping products”;

• (f) in section 161A(3) (power to search premises: search warrant) after “manufacture of spirits” insert “or vaping products”;

• (g) in section 163A(2) (power to search articles) after “alcoholic products,” insert “vaping products,”.

4

In section 1 of the Excise Duties (Surcharges or Rebates) Act 1979 after subsection (1)(a) insert—

(ab) that chargeable in respect of vaping products;

5

In paragraph 11 of Schedule 5 to the Consumer Rights Act 2015, in the table, after the last entry insert—

A local weights and measures authority in Great Britain or a district council in Northern Ireland	Section 136 of the Finance Act 2026 (vaping products duty)

6

In paragraph 2(1) of Schedule 17 to F(No.2)A 2017 (disclosure of tax avoidance schemes: indirect taxes), after “duties on spirits, beer, wine, made-wine and cider” insert—

• vaping products duty

7

In section 49 of TCTA 2018 in the definition of “excise duty”—

• (a) omit the “or” after paragraph (b), and

• (b) after paragraph (c), insert—

or (d) Part 4 of the Finance Act 2026 (vaping products duty)

Schedule 16 — CBAM Goods

1

The goods specified by this Schedule are goods within a commodity code set out in the following Table, other than those within a commodity code that the Table indicates are excepted.

Commodity code	Classification
Aluminium goods	Aluminium goods
7601	Unwrought aluminium
7603	Aluminium powders and flakes
7604	Aluminium bars, rods and profiles
7605	Aluminium wire
7606	Aluminium plates, sheets and strip, of a thickness exceeding 0.2 mm
7607	Aluminium foil (whether or not printed or backed with paper, paper-board, plastics or similar backing materials) of a thickness (excluding any backing) not exceeding 0.2 mm
7608	Aluminium tubes and pipes
7609	Aluminium tube or pipe fittings (for example, couplings, elbows, sleeves)
7610	Certain Aluminium structures (excluding prefabricated buildings of heading 9406) and parts of structures (for example, bridges and bridge-sections, towers, lattice masts, roofs, roofing frameworks, doors and windows and their frames and thresholds for doors, balustrades, pillars and columns); aluminium plates, rods, profiles, tubes and the like, prepared for use in structures
7611	Aluminium reservoirs, tanks, vats and similar containers, for any material (other than compressed or liquefied gas), of a capacity exceeding 300 litres, whether or not lined or heat-insulated, but not fitted with mechanical or thermal equipment
7612	Aluminium casks, drums, cans, boxes and similar containers (including rigid or collapsible tubular containers), for any material (other than compressed or liquefied gas), of a capacity not exceeding 300 litres, whether or not lined or heat-insulated, but not fitted with mechanical or thermal equipment
7613	Aluminium containers for compressed or liquefied gas
7614	Stranded wire, cables, plaited bands and the like, of aluminium, not electrically insulated
7616	Other articles of aluminium
Cement	Cement
2507 00 80	Other kaolinic clays
2523 10	Cement clinkers
2523 21	White Portland cement, whether or not artificially coloured
2523 29	Other Portland cement
2523 30	Aluminous cement
2523 90	Other hydraulic cements
Fertilisers	Fertilisers
2808 00	Nitric acid; sulphonitric acids
2814	Ammonia, anhydrous or in aqueous solution
2834 21	Nitrates of potassium
3102	Mineral or chemical fertilisers, nitrogenous
3105Except: 3105 60	Mineral or chemical fertilisers containing two or three of the fertilising elements nitrogen, phosphorus and potassium; other fertilisers; goods of this chapter in tablets or similar forms or in packages of a gross weight not exceeding 10 kgExcept:Mineral or chemical fertilisers containing the two fertilising elements phosphorus and potassium
Hydrogen	Hydrogen
2804 10	Hydrogen
Iron and steel goods	Iron and steel goods
2601 12	Agglomerated
72Except:7202 217202 307202 507202 707202 807202 917202 927202 937202 99 107202 99 307202 99 807204	Iron and steelExcept:Ferro-siliconFerro-silico-manganeseFerro-silico-chromiumFerro-molybdenumFerro-tungsten and ferro-silico-tungstenFerro-titanium and ferro-silico-titaniumFerro-vanadiumFerro-niobiumFerro-phosphorusFerro-silico-magnesiumOtherFerrous waste and scrap; remelting scrap ingots and steel
7301	Sheet piling of iron or steel, whether or not drilled, punched or made from assembled elements; welded angles, shapes and sections, of iron or steel
7302	Railway or tramway track construction material of iron or steel, the following: rails, check-rails and rack rails, switch blades, crossing frogs, point rods and other crossing pieces, sleepers (cross-ties), fish- plates, chairs, chair wedges, sole plates (base plates), rail clips, bedplates, ties and other material specialised for jointing or fixing rails
7303	Tubes, pipes and hollow profiles, of cast iron
7304	Tubes, pipes and hollow profiles, seamless, of iron (other than cast iron) or steel
7305	Other tubes and pipes (for example, welded, riveted or similarly closed), having circular cross-sections, the external diameter of which exceeds 406.4 mm, of iron or steel
7306	Other tubes, pipes and hollow profiles (for example, open seam or welded, riveted or similarly closed), of iron or steel
7307	Tube or pipe fittings (for example, couplings, elbows, sleeves), of iron or steel
7308	Structures (excluding prefabricated buildings of heading 9406) and parts of structures (for example, bridges and bridge-sections, lock- gates, towers, lattice masts, roofs, roofing frameworks, doors and windows and their frames and thresholds for doors, shutters, balustrades, pillars and columns), of iron or steel; plates, rods, angles, shapes, sections, tubes and the like, prepared for use in structures, of iron or steel
7309	Reservoirs, tanks, vats and similar containers for any material (other than compressed or liquefied gas), of iron or steel, of a capacity exceeding 300 litres, whether or not lined or heat-insulated, but not fitted with mechanical or thermal equipment
7310	Tanks, casks, drums, cans, boxes and similar containers, for any material (other than compressed or liquefied gas), of iron or steel, of a capacity not exceeding 300 litres, whether or not lined or heat-insulated, but not fitted with mechanical or thermal equipment
7311	Containers for compressed or liquefied gas, of iron or steel
7318	Screws, bolts, nuts, coach screws, screw hooks, rivets, cotters, cotter pins, washers (including spring washers) and similar articles, of iron or steel
7326	Other articles of iron or steel

2

• (1) In this Schedule “commodity code” means a code assigned to a classification of goods by the Goods Classification Table.

• (2) Regulations under section 8 of TCTA 2018 about determining within which commodity code a good falls apply for the purposes of CBAM.

• (3) The Commissioners may by regulations make such amendments to the Table in paragraph 1 as they consider appropriate in consequence of the Goods Classification Table, or a document replacing it, being amended or replaced.

• (4) In this paragraph, references to the Goods Classification Table are references to the Goods Classification Table as defined in regulations under section 8 of TCTA 2018.

Schedule 17 — Administration of CBAM

Part 1 — Introduction

1

• (1) The Commissioners are responsible for the collection and management of CBAM.

• (2) In this Schedule—

• (a) Part 2—

• (i) requires a person to register with HMRC for the purposes of CBAM if the person triggers registration, and

• (ii) makes further provision relating to registration and de-registration;

• (b) Part 3 makes provision about the payment of CBAM, accounting periods and returns;

• (c) Part 4 makes provision about the determination and evidencing of emissions embodied in a CBAM good and relief under section 150;

• (d) Part 5 confers power to make regulations about the measurement of weight;

• (e) Part 6 makes provision about records;

• (f) Part 7 makes provision about the artificial separation of business activities;

• (g) Part 8 makes provision about death, incapacity and insolvency;

• (h) Parts 9 and 10 make provision about the recovery of CBAM and repayments;

• (i) Parts 11 and 12 make provision about penalties, reviews and appeals relating to CBAM.

Part 2 — Registration

Duty to register with HMRC

2

• (1) A person must register with HMRC if the person triggers registration.

• (2) A person triggers registration if—

• (a) it is the first day of the month and, during the preceding 12 months, the person imported into the United Kingdom CBAM goods with an aggregate value of £50,000 or more in the course of a business, or

• (b) the person is expected to import into the United Kingdom, in the course of a business, CBAM goods with an aggregate value of £50,000 or more before the end of a period of 30 days.

• (3) For the purposes of sub-paragraph (2)—

• (a) disregard any CBAM good—

• (i) in respect of which section 147(2) applies (goods originating in the United Kingdom and returned goods), or

• (ii) that has been subject to the charge to CBAM by operation of section 145 (special customs procedures) and subsequently exported from the United Kingdom;

• (b) if a good is, or would be, subject to the charge to CBAM by operation of section 145 (special customs procedures) the value of the good is taken to be the amount of its value that is attributable to the CBAM good that entered, or would enter, the special customs procedure.

• (4) A person who triggers registration must register before the end of the period of 30 days beginning with the day on which the person first triggered registration.

• (5) When registering, a person must provide—

• (a) information specified by the Commissioners in regulations, and

• (b) a declaration that the person believes the information provided to be complete and correct.

• (6) An officer of Revenue and Customs may require a person to—

• (a) provide such information as the officer considers necessary in order to determine whether the person is required to register under this paragraph, and

• (b) provide that information within such period as the officer considers reasonable.

• (7) If it appears to an officer of Revenue and Customs that a person has triggered registration under this paragraph and has failed to register before the end of the period of 30 days in sub-paragraph (4), the officer may register the person.

• (8) If an officer of Revenue and Customs registers a person under sub-paragraph (7), the officer must notify the person of this.

• (9) The Commissioners may specify in a notice published by them the way in which a person is to register, provide information and make a declaration under this paragraph.

• (10) For the purposes of this Part of this Act—

• (a) a person is a “registered person” if the person—

• (i) has registered, or been registered by an officer of Revenue and Customs, under this paragraph, and

• (ii) has not been deregistered (see paragraph 3);

• (b) a person is a “registrable person” if the person—

• (i) has triggered registration under this paragraph, but

• (ii) has not registered, or been registered by an officer of Revenue and Customs, under this paragraph;

• (c) references to registering or a registration are to registering or a registration under this paragraph.

Deregistration

3

• (1) An officer of Revenue and Customs must deregister a registered person if the officer is satisfied that—

• (a) the person is not required to be registered and either—

• (i) the person has requested that they be deregistered, or

• (ii) the person has not been required to be registered at any time in the period of 12 months ending with the day on which the officer of Revenue and Customs deregisters the person, or

• (b) the person was not required to be registered on the day on which they registered and has not been required to be registered since,

but this is subject to sub-paragraph (2).

• (2) An officer of Revenue and Customs may decide not to deregister a person if—

• (a) there are outstanding amounts of CBAM, or amounts recoverable on the basis that they are amounts of CBAM, due from the person,

• (b) there are one or more outstanding returns under Part 3 of this Schedule due from the person, or

• (c) the officer considers that the person will be required to be registered before the end of the period of 12 months beginning with the day on which the person would otherwise be deregistered.

• (3) For the purposes of this paragraph, a person is “required to be registered” on a day if—

• (a) the person triggers registration on the day, or

• (b) on the first day of the month in which the day falls, the person triggered registration under paragraph 2(2)(a).

• (4) An officer of Revenue and Customs deregisters a person by issuing the person with a notice of deregistration.

• (5) A notice of deregistration must specify when the de-registration takes effect (which may be in the past).

• (6) A request under sub-paragraph (1)(a) must be made in the way specified in a notice published by the Commissioners.

• (7) If a person has requested under sub-paragraph (1)(a) that they be deregistered and the request is rejected, an officer of Revenue and Customs must issue the person with a notice—

• (a) informing them that their request has been rejected, and

• (b) giving reasons.

Notification of changed or incorrect information

4

• (1) A registered person must notify HMRC if—

• (a) information they provided under paragraph 2 changes, or

• (b) they discover that such provided information is incorrect.

• (2) The notification must be given before the end of the period of 30 days beginning with the day on which the information changed or they discovered that the information is incorrect.

• (3) The notification must be given in the way specified in a notice published by the Commissioners.

Value of CBAM goods

5

The Commissioners may by regulations make provision about determining the value of CBAM goods for the purposes of this Part of this Schedule.

Part 3 — Payment, accounting periods and returns

Payment and accounting periods

6

• (1) A registered or registrable person must account for and pay CBAM in respect of each accounting period.

• (2) The accounting periods are the periods of 3 months ending at the end of March, June, September and December.

• (3) Payment in respect of an accounting period must be made before the end of the last working day of the second month after the end of the accounting period.

• (4) Payment must be made by a method specified in a notice published by the Commissioners.

Returns

7

• (1) A registered or registrable person must make a return to HMRC for each accounting period.

• (2) A return under this paragraph must be made before the end of the last working day of the second month after the end of the accounting period to which it relates.

• (3) The Commissioners may by regulations make provision about what is to be included in a return under this paragraph.

• (4) The Commissioners may specify in a notice published by them—

• (a) the way in which the return is to be made;

• (b) that a digital facility provided by HMRC must be used to calculate the amount of CBAM shown in the return, subject to such exceptions as may be specified in the notice.

8

• (1) A person who has made a return under paragraph 7 may amend the return by notice to HMRC (and may further amend the return by further notice to HMRC) only in order to correct an error.

• (2) No amendment may be made to replace information on the emissions embodied in CBAM goods determined using default values set under paragraph 11 with such information determined in accordance with regulations under paragraph 10.

• (3) The Commissioners may specify in a notice published by them—

• (a) the way in which an amendment is to be made, and

• (b) by when it must be made.

Power to change accounting periods and deadlines

9

The Commissioners may by regulations amend—

• (a) paragraph 6(2) or (3) or 7(2);

• (b) item 5 in the table in paragraph 2(1) of Schedule 24 to FA 2021 (which relates to penalties for a failure to make returns under paragraph 7 of this Schedule) in consequence of an amendment under this paragraph of paragraph 6(2).

Part 4 — Determination and evidence of emissions and carbon price relief

10

• (1) The Commissioners may by regulations make provision about how emissions embodied in CBAM goods are to be determined and evidenced.

• (2) Regulations under this paragraph may (among other things)—

• (a) make different provision in relation to different goods, sectors, places, circumstances or activities;

• (b) make provision for methods of calculating figures;

• (c) make provision about measurement, sampling or analysis;

• (d) make provision by reference to information or technical standards published by a third party (including by an international organisation);

• (e) make provision about the treatment of gaps in data or measurement;

• (f) provide for the use of estimates or standard values or factors (including how estimates are to be made or standard values or factors are to be determined);

• (g) make provision about the treatment of anything used or done in the course of activities in the course of which the emissions were emitted;

• (h) make provision requiring information to be verified by a specified person or body.

11

• (1) The Treasury may by notice set default values that may be used for determining the emissions embodied in CBAM goods.

• (2) Default values set under this paragraph may (among other things)—

• (a) vary depending on where the emissions embodied in a CBAM good were emitted;

• (b) be in respect of any portion of the emissions embodied in a CBAM good.

• (3) A default value may be set at a level that ensures that there would not be an advantage to any person liable to CBAM in using the value instead of determining the emissions embodied in a CBAM good in accordance with regulations under paragraph 10.

• (4) In sub-paragraph (3), “advantage” includes an advantage arising from—

• (a) the emissions embodied in a CBAM good being lower if determined using default values;

• (b) not bearing the cost of determining or verifying emissions in accordance with regulations under paragraph 10.

12

• (1) The Commissioners may by regulations make provision about how relief under section 150 (carbon price relief) is to be determined and evidenced.

• (2) Regulations under sub-paragraph (1) may (among other things)—

• (a) make provision for methods of calculating the relief in accordance with principles for determining the amount of relief set out in regulations made under section 150;

• (b) make provision otherwise supplementing regulations made under section 150 about how relief under that section is to be determined;

• (c) make different provision in relation to different goods, sectors, places, circumstances or activities or by reference to where a carbon price is payable;

• (d) make provision requiring information to be verified by a specified person or body or by reference to information provided by a third party;

• (e) make provision about currency conversion.

Part 5 — Measurement of weight

13

• (1) The Commissioners may by regulations make provision about the measurement of weight for the purposes of CBAM.

• (2) Regulations under this paragraph may (among other things) include provision about—

• (a) how weight is to be measured;

• (b) the time at which weight is to be measured;

• (c) how weight is to be evidenced;

• (d) agreements between HMRC and particular persons about how weight is to be measured or evidenced, including provision for HMRC to disregard the terms of an agreement in circumstances set out in the regulations;

• (e) an officer of Revenue and Customs making their own assessment or best judgement of weight in relation to CBAM goods and substituting that assessment or judgement for the assessment or judgement of any other person;

• (f) an officer of Revenue and Customs inspecting or weighing CBAM goods or samples;

• (g) the assessment of weight by an officer of Revenue and Customs being based on estimates or assumptions.

Part 6 — Records

General requirements

14

• (1) The Commissioners may by regulations require specified persons—

• (a) to keep, for purposes connected with CBAM, records of specified matters, and

• (b) to preserve records for a specified period.

• (2) Regulations under sub-paragraph (1) may provide that a duty to preserve records under the regulations may be discharged by preserving them, or the information contained in them, in any form and by any means, subject to any conditions or exceptions specified in the regulations.

• (3) The period specified in regulations under sub-paragraph (1) may not exceed—

• (a) in a case where the records relate to an accounting period, 6 years beginning with the day after the end of the accounting period to which the records relate, or

• (b) in any other case, 6 years beginning with the day on which the records are created.

Directions

15

• (1) An officer of Revenue and Customs may direct a registered or registrable person—

• (a) to keep such records as are specified in the direction;

• (b) to preserve those records for a specified period.

• (2) The officer may not give a direction under sub-paragraph (1) unless they have reasonable grounds for believing that the records specified in the direction might assist in identifying CBAM goods in respect of which CBAM might not be paid.

• (3) A direction under sub-paragraph (1)—

• (a) must be in writing,

• (b) must specify the consequences under Part 11 of this Schedule of a failure to comply with a requirement imposed by the direction, and

• (c) may be revoked or replaced by a further direction.

• (4) The period specified in a direction under sub-paragraph (1)(b) may not exceed 6 years.

Part 7 — Artificial separation of business activities

16

• (1) This paragraph applies for the purpose of preventing the maintenance or creation of any artificial separation of business activities carried on by two or more persons resulting in an avoidance of CBAM.

• (2) An officer of Revenue and Customs may make a direction naming any person if they are satisfied that—

• (a) the person is importing CBAM goods into the United Kingdom in the course of a business,

• (b) the activities in the course of which the person does so form only part of certain activities, the other activities being carried on concurrently or previously (or both) by one or more other persons,

• (c) the activities carried on by those persons have been, or are, artificially separated, having regard to whether the persons carrying on those activities are connected within the meaning of section 1122 of CTA 2010 (“connected” persons), and

• (d) if all the activities of those persons were taken into account, a single person carrying on that business would at the time of the direction be required to register under paragraph 2.

• (3) The effect of a direction under sub-paragraph (2) is that for the purposes of this Part of this Act—

• (a) the persons named in the direction are to be treated as a single taxable person (“the taxable person”) carrying on the activities of a business described in the direction,

• (b) the taxable person is deemed to have registered on the date of the direction or on such earlier or later date as may be specified in the direction—

• (i) in the name of one of the persons named in the direction nominated jointly by them in writing to the officer of Revenue and Customs who made the direction within the period of 14 days beginning with the date of the direction, or

• (ii) if no such name is nominated, in such name as may be determined by the officer;

• (c) the importation of CBAM goods by, or on behalf of, a person named in the direction in the course of the activities carried on by the taxable person is to be treated as the importation of CBAM goods in the course of a business by the taxable person;

• (d) each person named in the direction is jointly and severally liable for any CBAM due from the taxable person;

• (e) any failure by the taxable person to comply with any requirement imposed by or under this Part of this Act is to be treated as a failure by each person named in the direction severally.

• (4) The earliest date a direction may specify under sub-paragraph (3)(b) is the date on which the persons named in the direction would, if they were treated as a single taxable person on that date, have first triggered registration under paragraph 2.

• (5) Sub-paragraph (6) applies where, after a direction is made under sub-paragraph (2), it appears to an officer of Revenue and Customs that—

• (a) a person who was not named in the direction is importing CBAM goods in the course of activities which should be regarded as part of the activities of the business described in the direction, or

• (b) a person who is named in the direction should no longer be named in the direction.

• (6) The officer of Revenue and Customs may by direction modify the earlier direction so that—

• (a) it names the person mentioned in sub-paragraph (5)(a), or

• (b) the person mentioned in sub-paragraph (5)(b) is removed from the earlier direction (as the case may be).

• (7) A modification under sub-paragraph (6)(a) comes into force on—

• (a) the date on which the person began to import CBAM goods in the course of activities which should be regarded as part of the activities of the business described in the direction, or

• (b) if later, the date on which the single taxable person referred to in the earlier direction is deemed to have registered.

• (8) A modification under sub-paragraph (6)(b) comes into force on the date specified in the direction.

• (9) A direction under sub-paragraph (2), and any determination under sub-paragraph (3)(b)(ii), must be given to each person named in the direction.

• (10) A direction under sub-paragraph (6)(a) must be given to each person named in the earlier direction as modified.

• (11) A direction under sub-paragraph (6)(b) must be given to—

• (a) each person named in the earlier direction as modified, and

• (b) the person being removed from the earlier direction.

• (12) A registered person is to be treated as no longer being a registered person in their own right from such time as they begin to form part of a single taxable person under a direction under this paragraph.

Part 8 — Death, incapacity and insolvency

17

• (1) This paragraph applies where a registered person, who is an individual, is deceased or incapacitated and another person (P) carries on the business to which the registered person’s registration relates.

• (2) Where this paragraph applies, P must notify HMRC of their carrying on of the business before the end of the period of 21 days beginning with the day on which they began to carry on the business.

• (3) The notification must—

• (a) be accompanied by evidence of P’s authority to carry on the business;

• (b) include information, and be accompanied by evidence about, the death or incapacitation of the registered person.

• (4) The Commissioners may specify in a notice published by them—

• (a) the particular items of information to be included in, and evidence to accompany, the notification;

• (b) the way in which the notification is to be given.

• (5) Where this paragraph applies, HMRC may treat P as if they were the registered person for the purposes of CBAM for a period of up to 6 months beginning with the day on which the period under sub-paragraph (2) ends.

• (6) An officer of Revenue and Customs may extend the period under sub-paragraph (5) as they think fit by notice in writing to P.

18

• (1) This paragraph applies where a registered person is subject to an insolvency procedure and a person (P) acts as an insolvency office holder in relation to that registered person.

• (2) Where this paragraph applies, HMRC may treat P as if they were the registered person for the purposes of CBAM.

• (3) Where P is treated under sub-paragraph (2) as if they were the registered person—

• (a) any liability of the registered person to pay CBAM which arose at a time before the date on which the insolvency procedure began continues to be payable by the registered person;

• (b) any liability of the registered person to pay CBAM which arises at a time on or after the date on which the insolvency procedure began is to be regarded as an expense of that procedure (unless the procedure is within sub-paragraph (4)(b)(vii)).

• (4) In this paragraph—

• (a) “insolvency office holder” means—

• (i) an administrative receiver;

• (ii) an administrator;

• (iii) a liquidator;

• (iv) a receiver appointed by the courts or by a mortgagee;

• (v) a trustee in bankruptcy;

• (vi) a trustee (or interim trustee) in the sequestration of an estate;

• (vii) a person acting in an equivalent capacity under the law of a country or territory outside the United Kingdom;

• (b) “insolvency procedure” means—

• (i) administration;

• (ii) administrative receivership;

• (iii) bankruptcy;

• (iv) receivership;

• (v) sequestration;

• (vi) winding up;

• (vii) an equivalent procedure under the law of a country or territory outside the United Kingdom.

Part 9 — Recovery

Recovery as a debt due

19

CBAM is recoverable as a debt due to the Crown.

Assessments of amounts of CBAM

20

• (1) Sub-paragraph (2) applies where it appears to an officer of Revenue and Customs that—

• (a) any period is an accounting period by reference to which a registered or registrable person is liable to CBAM,

• (b) an amount of CBAM for which the person is liable to account by reference to that period has become due, and

• (c) there has been a relevant default by the person (see sub-paragraph (3)).

• (2) The officer of Revenue and Customs—

• (a) may—

• (i) in a case where the amount of CBAM due from the person for that period cannot be ascertained, assess the amount due from the person for that period to the best of their judgement;

• (ii) in any other case, assess the amount due from the person for that period, and

• (b) where such an assessment is made, must notify the person of that amount.

• (3) The following are “relevant defaults”—

• (a) a failure to comply with a requirement of paragraph 2 (registration) or paragraph 4 (updating or correcting registration information);

• (b) the provision, in purported compliance with paragraph 2 or 4, of incomplete or incorrect information;

• (c) a failure to make a return required by paragraph 7;

• (d) a failure to keep documents, or provide facilities, necessary to verify returns required by paragraph 7;

• (e) the submitting, in purported compliance with paragraph 7, of an incomplete or incorrect return;

• (f) a failure to comply with a requirement imposed under paragraph 14 or by paragraph 15 (keeping and preserving records);

• (g) a failure to provide HMRC with complete or accurate information in complying with any requirement imposed by or under this Part of this Act;

• (h) an unreasonable delay in complying with a requirement, where the failure to comply would be a default within any of paragraphs (a) to (g).

21

• (1) Sub-paragraph (2) applies where—

• (a) an officer of Revenue and Customs has made an assessment under paragraph 20(2) for an accounting period as a result of a person’s failure to submit a return for that period,

• (b) the CBAM assessed has been paid but no proper return has been made for that period, and

• (c) as a result of a failure to make a return for a later accounting period, an officer of Revenue and Customs makes another assessment (“the later assessment”) under paragraph 20(2) in relation to the later period.

• (2) The officer of Revenue and Customs may, if the officer considers it appropriate in light of the absence of a proper return for the earlier period, specify in the later assessment an amount of CBAM due that is greater than the amount that they would have considered to be appropriate had they had regard only to the later period.

Supplementary assessments

22

• (1) Sub-paragraph (2) applies where—

• (a) an assessment has been notified to a person under paragraph 20(2), and

• (b) it appears to an officer of Revenue and Customs that the amount which ought to have been assessed as due exceeds the amount that has already been assessed.

• (2) The officer of Revenue and Customs—

• (a) may make a supplementary assessment of the amount of CBAM due from the person to the best of their judgement, and

• (b) where such an assessment is made, must notify the person of that amount.

Further provision about assessments under paragraphs 20 and 22

23

• (1) An amount assessed and notified to a person under paragraph 20 or 22 is recoverable on the basis that it is an amount of CBAM due from that person.

• (2) But sub-paragraph (1) does not apply if, or to the extent that, the assessment has been withdrawn or reduced.

Time limits for assessments

24

• (1) An assessment under paragraph 20 or 22 may not be made after the relevant time.

• (2) Except in a case within sub-paragraph (3) the relevant time is the earlier of—

• (a) the end of the period of 4 years from the end of the accounting period to which the assessment relates, or

• (b) the end of the period of 1 year beginning with the day on which evidence of facts, sufficient in the opinion of the officer of Revenue and Customs making the assessment to justify making it, comes to the knowledge of any officer of Revenue and Customs.

• (3) Where an assessment of an amount due from a person is made in a case involving loss of CBAM—

• (a) brought about deliberately by the person, or

• (b) attributable to a failure by the person to comply with a requirement of paragraph 2 or 4,

the relevant time is the end of the period of 20 years from the end of the accounting period to which the assessment relates.

• (4) In sub-paragraph (3) the reference to a loss brought about by a person includes a reference to a loss brought about by another person acting on behalf of that person.

Part 10 — Repayments

Repayments of overpaid tax

25

• (1) This paragraph applies where a person (P) has paid an amount to the Commissioners by way of CBAM which was not tax due.

• (2) The Commissioners are liable, on the making of a claim by P, to repay the amount.

• (3) A claim under this paragraph must be made in the way, and be supported by the information, specified in a notice published by the Commissioners.

• (4) Except as provided by this paragraph, the Commissioners are not liable to repay any amount paid by way of CBAM by reason of the fact that it was not tax due.

• (5) This paragraph is subject to paragraph 26.

Supplementary provision about repayment etc

26

• (1) The Commissioners are not liable, on any claim for a repayment of CBAM, to repay any amount paid more than 3 years before the making of the claim.

• (2) It is a defence to any claim for repayment of an amount of CBAM that the repayment of that amount would unjustly enrich the claimant.

27

• (1) This paragraph applies where—

• (a) an amount has been paid by way of CBAM which (apart from paragraph 26(2)) would fall to be repaid to a person (P), and

• (b) the whole or a part of the cost of the payment of that amount to the Commissioners has, for practical purposes, been borne by a person other than P.

• (2) Where loss or damage has been, or may be, incurred by P as a result of mistaken assumptions made in P’s case about the operation of any provisions relating to CBAM, that loss or damage is to be disregarded, except to the extent of the quantified amount, in the making of a relevant determination.

• (3) In sub-paragraph (2)—

• (a) “the quantified amount” means the amount (if any) which is shown by P to constitute the amount that would appropriately compensate P for loss or damage shown by P to have resulted, for any business carried on by P, from the making of the mistaken assumptions;

• (b) a “relevant determination” means a determination for the purposes of paragraph 26(2) as to—

• (i) whether or to what extent the repayment of an amount would enrich P, or

• (ii) whether or to what extent any enrichment of P would be unjust.

• (4) The reference in sub-paragraph (2) to provisions relating to CBAM is a reference to—

• (a) any provision made by or under any enactment which relates to the tax or to any matter connected with it, or

• (b) any notice published by the Commissioners under or for the purposes of any such provision.

Reimbursement arrangements

28

• (1) The Commissioners may by regulations provide for reimbursement arrangements to be disregarded for the purposes of paragraph 26(2) except where the arrangements—

• (a) contain such provision as may be required by the regulations, and

• (b) are supported by such undertakings to comply with the provisions of the arrangements as may be required by the regulations to be given to the Commissioners.

• (2) In this paragraph “reimbursement arrangements” means arrangements for the purposes of a claim to a repayment of CBAM which—

• (a) are made by a person for the purpose of securing that the person is not unjustly enriched by the repayment of any amount in pursuance of the claim, and

• (b) provide for the reimbursement of a person who has for practical purposes borne the whole or any part of the cost of the original payment of that amount to the Commissioners.

• (3) Regulations under this paragraph may (among other things) make provision requiring reimbursement arrangements to contain provision—

• (a) requiring a reimbursement for which the arrangements provide to be made within a specified period after the repayment to which it relates;

• (b) for the repayment of amounts to the Commissioners where those amounts are not reimbursed in accordance with the arrangements;

• (c) requiring interest paid by the Commissioners on any amount repaid by them to be treated in the same way as that amount for the purposes of any requirement under the arrangements to make reimbursement or to repay the Commissioners;

• (d) requiring records of a specified description relating to the arrangements to be kept and produced to the Commissioners, or to an officer of Revenue and Customs;

• (e) imposing obligations on specified persons for the purposes of provision made under paragraphs (a) to (d).

• (4) Regulations under this paragraph may—

• (a) make provision about the form, manner and timing of undertakings given to the Commissioners in accordance with the regulations;

• (b) provide for those matters to be determined by the Commissioners in accordance with the regulations.

Assessment for excessive repayment

29

• (1) Sub-paragraph (3) applies where—

• (a) an amount has been paid at any time to a person by way of a repayment of CBAM, and

• (b) the amount paid exceeded the amount which the Commissioners were liable at that time to repay to that person.

• (2) Sub-paragraph (3) also applies where a person is liable to pay any amount to the Commissioners in pursuance of an obligation imposed by regulations under paragraph 28(3)(b), (c) or (e).

• (3) The Commissioners may—

• (a) to the best of their judgement, assess the amount of the excess (in a case within sub-paragraph (1)) or the amount due (in a case within sub-paragraph (2)), and

• (b) where such an assessment is made, notify the amount to the person.

• (4) Subject to sub-paragraph (5), where—

• (a) an assessment is made on any person under this paragraph in respect of a repayment of CBAM, and