Legislation – Finance Act 2026
Changes to legislation:
Finance Act 2026, Section 150 is up to date with all changes known to be in force on or before 16 April 2026. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
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Changes and effects yet to be applied to Section 150:
- Pt. 15 excluded by S.I. 2026/331 reg. 19
Changes and effects yet to be applied to the whole Act associated Parts and Chapters:
Whole provisions yet to be inserted into this Act (including any effects on those provisions):
- Pt. 15 excluded by S.I. 2026/331 reg. 19
Part 5Carbon border adjustment mechanism
The charge
150Carbon price relief
(1)
The amount of CBAM charged on emissions may be reduced under this section if another monetary amount is payable in relation to the emissions, whether the amount is—
(a)
in the form of taxation,
(b)
in exchange for allowances (however expressed) under an emissions trading scheme, or
(c)
required to be paid under the law of a country or territory in connection with the importation of goods into the country or territory.
(2)
The Treasury may by regulations make provision about relief under this section, including provision—
(a)
describing which monetary amounts may generate relief,
(b)
about when a monetary amount is to be treated as being payable in relation to emissions, and how the emissions are to be identified, and
(c)
about determining the amount of relief.
(3)
In this Part, “carbon price” means a monetary amount of a kind described in regulations under subsection (2)(a).
(4)
Regulations under subsection (2) may (among other things) make provision—
(a)
for the amount of relief to be determined by reference to averages, estimates, assumptions or by reference to information provided by a third party;
(b)
to take account of other reliefs, allowances, offsets or similar relating to a carbon price;
(c)
about cases where two or more carbon prices are payable in relation to the same emissions;
(d)
for the amount of relief to differ depending on where the carbon price is payable;
(e)
specifying periods by reference to which calculations or measurements are to be made.
(5)
In this section, references to an amount being payable in relation to emissions includes a reference to—
(a)
an amount that indirectly relates to emissions, and
(b)
an amount having been payable, or that is going to become payable, in relation to emissions.