Legislation – Finance Act 2026

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

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.

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.

information specified by the Commissioners in regulations, and

a declaration that the person believes the information provided to be complete and correct.

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

provide that information within such period as the officer considers reasonable.

references to registering or a registration are to registering or a registration under this paragraph.

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

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

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

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.

the person triggers registration on the day, or

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

informing them that their request has been rejected, and

giving reasons.

information they provided under paragraph 2 changes, or

they discover that such provided information is incorrect.

the way in which the return is to be made;

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.

the way in which an amendment is to be made, and

by when it must be made.

to keep, for purposes connected with CBAM, records of specified matters, and

to preserve records for a specified period.

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

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

to keep such records as are specified in the direction;

to preserve those records for a specified period.

must be in writing,

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

may be revoked or replaced by a further direction.

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

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

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

where such an assessment is made, must notify the person of that amount.

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

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

a failure to make a return required by paragraph 7;

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

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

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

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

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

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,

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

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.

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

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.

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

where such an assessment is made, must notify the person of that amount.

the end of the period of 4 years from the end of the accounting period to which the assessment relates, or

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.

brought about deliberately by the person, or

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

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

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.

“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;

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

any notice published by the Commissioners under or for the purposes of any such provision.

contain such provision as may be required by the regulations, and

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.

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

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.

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

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

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;

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;

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

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

provide for those matters to be determined by the Commissioners in accordance with the regulations.

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

the amount paid exceeded the amount which the Commissioners were liable at that time to repay to that person.

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

where such an assessment is made, notify the amount to the person.

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

the Commissioners have power under Part 9 of this Schedule to make an assessment on that person as to an amount of CBAM due from that person,

an assessment has been notified to a person under paragraph 29, and

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.

on or before the last day on which the assessment under paragraph 29 could have been made (see paragraph 32), make a supplementary assessment of the amount of CBAM due from the person, and

where such a supplementary assessment is made, notify the amount to that person.

paragraph 4 (changed or incorrect registration information);

paragraph 17 (death or incapacity).

a fixed penalty of £500, and

a daily penalty of £40 for each day on which P continues to fail to make the required notification after the last day on which P was permitted to do so.

P satisfies an officer of Revenue and Customs or, on appeal, the tribunal that there is a reasonable excuse for the failure, or

the penalty would subject P to double jeopardy.

an insufficiency of funds is not a reasonable excuse,

where P relies on any other person to do anything, that is not a reasonable excuse unless P took reasonable care to avoid the failure, and

where P had a reasonable excuse for the failure but the excuse has ceased, P is to be treated as having continued to have the excuse only if the failure is remedied without unreasonable delay after the excuse ceased.

convicted of an offence, or

assessed to a penalty other than under paragraph 38 or 39.

may assess the amount of the penalty, and

where such an assessment is made, must notify the person of the amount.

an officer of Revenue and Customs has made an assessment of a penalty, and

it appears to the officer that the amount which ought to have been assessed exceeds the amount that has already been assessed.

may make a supplementary assessment of the amount of the penalty, and

where such an assessment is made, must notify the person of that amount.

an officer of Revenue and Customs assesses a person to an amount of penalty under paragraph 42(1) or (3), and

the person is also assessed under Part 9 of this Schedule for an accounting period to which the conduct attracting the penalty relates.

a notification of an amount of a penalty specifies a date under sub-paragraph (1), and

the failure in question is remedied within such period as may for the purpose of this sub-paragraph be specified in the notification.

brought about deliberately by the person liable to the penalty, or

attributable to a failure by that person to comply with a requirement under Part 2 of this Schedule,

the registration, or de-registration, of a person under Part 2 of this Schedule;

whether to treat a person as if they were a registered person for the purposes of CBAM under paragraph 17(5) or 18(2);

whether to extend such treatment under paragraph 17(6);

whether the Commissioners are liable to repay an amount to a person under paragraph 25(2) or the amount of such a repayment;

whether or not the repayment of an amount under paragraph 25(2) is excessive (see paragraph 29);

the amount that a person is liable to pay the Commissioners to comply with an obligation under paragraph 28(3)(b), (c) or (e);

whether a person is liable to a penalty under paragraph 38 or 39 or the amount of such a penalty;

the period by reference to which payments of CBAM are to be made.

a direction under paragraph 15;

a direction under paragraph 16(2) or (6).

“decision” means a decision, determination or direction within sub-paragraph (1) or (2);

references to appealing against a decision are to appealing against the decision under paragraph 48

P has notified HMRC under paragraph 49 accepting the offer of a review, or

a person other than P has notified HMRC under paragraph 50 that they require a review.

the date of the notice, or

any other date set out in the notice or a further notice.

P has not accepted the offer of a review of a decision within the period mentioned in paragraph 49(3) (including as extended under paragraph 52) and makes a request to HMRC in writing for a review out of time, or

a person other than P who may require a review of a decision has not done so within the period mentioned in paragraph 50(3) (including as extended under paragraph 52) and makes a request to HMRC in writing for a review out of time.

had a reasonable excuse for not accepting the offer of a review or requiring the review within the applicable period, and

made the request without unreasonable delay after the excuse had ceased to apply.

the decision-maker in reaching the decision, and

any person in seeking to resolve disagreement about the decision.

upheld,

varied, or

cancelled.

the period of 45 days beginning with the relevant date, or

such other period as the officer and the person who required the review may agree.

in a case falling within paragraph 49, the date HMRC received the person’s notification accepting the offer of a review,

in a case falling within paragraph 50, the date HMRC received notification from the person requiring a review, or

in a case falling within paragraph 53, the date on which the officer decided they were under a duty to undertake the review.

upheld, or

cancelled.

it was concluded on an earlier review required to be undertaken under paragraph 51 or 53 that HMRC’s decision that the person who required the review was liable to the penalty point was to be upheld, or

HMRC’s decision that the person who required the review was liable to the penalty point has been affirmed on appeal.

references to the appeal under paragraph 22(b) of that Schedule are to be read as references to the review required to be undertaken under paragraph 51 or 53 (as the case may be),

references to the tribunal are to be read as references to HMRC, and

references to cancelling a decision are to be read as references to concluding that HMRC’s decision is to be cancelled.

if later, the end of the period in which the appellant may accept or require a review (see paragraph 49(3) or 50(3)), including as extended under paragraph 52.

an appeal may not be made until the conclusion date, and

any appeal is to be made within the period of 30 days beginning with that date.

any appeal where paragraph (a)(ii) applies is to be made within the period of 30 days beginning with the conclusion date;

if an officer of Revenue and Customs has notified the person who requested the review that a review will not be undertaken, an appeal may be made only if the tribunal gives permission to do so.

HMRC are satisfied or, if HMRC are not satisfied but the tribunal has decided, on the application of the appellant, that the requirement to pay or deposit the amount would cause the appellant to suffer hardship, and

it is found that an assessment in respect of the appellant is an assessment for an amount that is less than it ought to have been, and

the tribunal give a direction specifying the correct amount,

direct that the decision, so far as it remains in force, is to cease to have effect from such time as the tribunal may direct, or

require an officer of Revenue and Customs to conduct, in accordance with the directions of the tribunal, a review or a further review of the original decision as appropriate.

in exercise of a power conferred on the tribunal by Part 11 of this Schedule (penalties), or

for the purpose of making the amount payable conform to the amount due in accordance with this Part of this Act.

references to section 83 of that Act as references to paragraph 48 of this Schedule, and

the references to value added tax as references to CBAM.