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Notice Made Under Primary Legislation

Finance Act 2026, Part 5 — Carbon Border Adjustment Mechanism

Where terms are used in this notice which are defined in Part 5 of the Finance Act 2026 they have the same meaning.

Schedule 17, Part 2 — Registration

The following text has the force of law by virtue of paragraph 2(9) of Schedule 17 to the Finance Act 2026

If a person triggers registration under paragraph 2(2) of Schedule 17, they must register using the CBAM service, accessed through their Government Gateway account.

If a registrable person does not have access to the internet or is unable to use it on religious grounds, they must inform HMRC in writing or by telephone and HMRC may permit them to register via a non-digital method.

The following text has the force of law by virtue of paragraph 3(6) of Schedule 17 to the Finance Act 2026

If a registered person wants to request that they be deregistered from CBAM they must do so using the CBAM service, accessed through their Government Gateway account.

If the registered person does not have access to the internet or is unable to use it on religious grounds, they must inform HMRC in writing or by telephone and HMRC may permit them to deregister via a non-digital method.

The following text has the force of law by virtue of paragraph 4(3) of Schedule 17 to the Finance Act 2026

Where a registered person must notify HMRC that either the information they provided as part of their duty to register has changed, or they discover that the information provided was incorrect, they must make this notification using the CBAM service, accessed through their Government Gateway account.

If the registered person does not have access to the internet or is unable to use it on religious grounds, they must inform HMRC in writing or by telephone and HMRC may permit them to notify the errors or changes via a non-digital method.

Schedule 17, Part 3 — Payment, accounting periods and returns

The following text has the force of law by virtue of paragraph 6(4) of Schedule 17 to Finance Act 2026

Where a person makes a payment in respect of CBAM, they must pay by:

• Direct Debit
• online banking
• telephone banking
• credit/debit card

The following text has the force of law by virtue of paragraph 7(4) of Schedule 17 to Finance Act 2026

A person required to submit a return in respect of CBAM must submit that return using the CBAM service, accessed through their Government Gateway account.

If the registered person does not have access to the internet or is unable to use it on religious grounds, they must inform HMRC in writing or by telephone and HMRC may permit them to submit their returns via a non-digital method.

The following text has the force of law by virtue of paragraph 8(3) of Schedule 17 to The Finance Act 2026

Where a registered person who wants to amend a return they have submitted to correct an error, they must notify HMRC using the CBAM service, accessed through their Government Gateway account. Amendments using this service must be made within 3 years of the end of the accounting period to which the return relates.

If the registered person does not have access to the internet or is unable to use it on religious grounds, they must inform HMRC in writing or by telephone and HMRC may permit them to correct an error on their returns via a non-digital method.

Schedule 17, Part 8 — Death and incapacity

The following text has the force of law by virtue of paragraph 17(4) of Schedule 17 to the Finance Act 2026

The person who is carrying on the business (P) to which the registered person’s registration relates must notify HMRC through their Government Gateway account and provide:

• information that identifies the registered person (this must include their name, address, EORI number, VAT number (where they have one), and CBAM reference number)
• information that identifies P (this must include their name, address, EORI number, VAT number (where they have one), and CBAM reference number)
• the date P started carrying on the business.
• where the registered person has died, a copy of their death certificate or other evidence of date of death
• where the registered person is incapacitated, details of how they became incapacitated and the date from which their incapacitation began

If P does not have access to the internet or is unable to use it on religious grounds, they must inform HMRC in writing or by telephone and HMRC may permit them to notify about carrying on the business via a non-digital method.

Schedule 17, Part 10 — Repayments

The following text has the force of law by virtue of paragraph 25(3) of Schedule 17 to Finance Act 2026

Where a person makes a claim for repayment, they must do this using the CBAM service, accessed through their Government Gateway account, and must include the following information:

• the reason for the claim
• the date the error was found
• the accounting period to which the claim relates
• details of the CBAM goods concerned which would usually be required on the CBAM return. Where applicable, this includes:
  • commodity code
  • weight
  • emissions data
  • country of origin
  • carbon price relief
  • exemptions
• the date the CBAM liability was originally paid
• the amount overpaid
• any related documents

If the person does not have access to the internet or is unable to use it on religious grounds, they must inform HMRC in writing or by telephone and HMRC may permit them to claim for repayment via a non-digital method.

Notice Made Under Regulations

The Carbon Border Adjustment Mechanism (Administrative Provisions) Regulations 2026

The following text has the force of law by virtue of regulation 10(3) of The Carbon Border Adjustment Mechanism (Administrative Provisions) Regulations 2026

For the first CBAM return covering the 1 January 2027 to 31 December 2027 accounting period, the return must state the quarter in which the relevant CBAM good was imported.

The following text has the force of law by virtue of regulation 15(c) of The Carbon Border Adjustment Mechanism (Administrative Provisions) Regulations 2026

Reimbursement will be made by bank transfer.

The Carbon Border Adjustment Mechanism (Calculation of CBAM Rate and Determination of Carbon Price Relief) Regulations 2026.

Emissions factors

The following text has the force of law by virtue of regulation 6(2)(b) of The Carbon Border Adjustment Mechanism (Calculation of CBAM Rate and Determination of Carbon Price Relief) Regulations 2026

Where a cost on relevant emissions is imposed indirectly in relation to the manufacturing or processing a CBAM good, the emissions factor used by the carbon pricing scheme must be taken directly from, or calculated using the methodology of any of the following sources:

• the Intergovernmental Panel on Climate Change  
• the International Energy Agency  
• the United Nationals Framework Convention on Climate Change

Verification: accreditation

The following text has the force of law by virtue of [regulation 8(a) of The Carbon Border Adjustment Mechanism (Calculation of CBAM Rate and Determination of Carbon Price Relief) Regulations 2026

Data specified in regulation 7 must be verified by a verification body that has been accredited to all of the following international standards from either the International Organisation of Standards (ISO) and/or International Electrotechnical Commission (IEC):

• ISO/IEC 17029:2019 Conformity assessment — General principles and requirements for validation and verification bodies
• ISO 14064-3:2019 Greenhouse gases — Part 3: Specification with guidance for the verification and validation of greenhouse gas statements
• ISO 14065:2020 General principles and requirements for bodies validating and verifying environmental information
• ISO 14066:2023 Environmental information — Competence requirements for teams validating and verifying environmental information

Verification: carbon pricing verification form

The following text has the force of law by virtue of regulations 7(3) and 9(2) of The Carbon Border Adjustment Mechanism (Calculation of CBAM Rate and Determination of Carbon Price Relief) Regulations 2026

The carbon pricing verification form will be published electronically by HMRC and accessible via the CBAM collections page on °Ç¸ç³Ô¹Ï.

For the form to be valid, the verifier must complete it fully and accurately, including completion of the following mandatory data fields on the form:

• data required as set out in [clause 7(1) of The Carbon Border Adjustment Mechanism (Calculation of CBAM Rate and Determination of Carbon Price Relief) Regulations 2026 — this data must be from a calendar year that is one of the two years prior to the calendar year in which importation takes place
• details of the installation that manufactured the good 
• details of the verifier completing the form who meets the relevant accreditation standards set out by the Commissioners

Calculation of the effective carbon price

The following text has the force of law by virtue of regulation 7(3) and 12(2) of The Carbon Border Adjustment Mechanism (Calculation of CBAM Rate and Determination of Carbon Price Relief) Regulations 2026

For the purposes of Step 1:

• the amount may be taken from a calendar year that is one of the two years prior to the calendar year importation takes place

For the purposes of Step 2:

• the total amount of emissions must be the same figure produced by Step 1 and be expressed in tonnes of carbon dioxide equivalent

For the purposes of Step 3:

• where the headline carbon price from a qualifying carbon pricing scheme is applicable for emissions the importer must take the price from the calendar quarter prior to the date of the tax point
• if the headline carbon price was variable rather than fixed, the mean average from that quarter must be used
• if emissions are priced indirectly in metrics other than tCO2e, in a qualifying carbon pricing scheme, the correct emissions factor from that scheme as per the notice made under regulation 6(2)(b) of the Carbon Border Adjustment Mechanism (Calculation of CBAM Rate and Determination of Carbon Price Relief) Regulations 2026, must be used to get a per tCO2e value
• where greenhouse gas removals are applicable as a relevant element of a carbon pricing scheme per regulation 11(c) of the Carbon Border Adjustment Mechanism (Calculation of CBAM Rate and Determination of Carbon Price Relief) Regulations 2026, the publicly available price of that greenhouse gas removal provider must be used on the same terms as the headline carbon price outlined above
• any emissions subject to a price covered by free allowances or before a threshold should be multiplied by zero

Exchange rate

The following text has the force of law by virtue of regulation 14 of The Carbon Border Adjustment Mechanism (Calculation of CBAM Rate and Determination of Carbon Price Relief) Regulations 2026

Where the amount of carbon price relief is not expressed in sterling, it must be converted in accordance with regulation 13(5) of The Carbon Border Adjustment Mechanism (Calculation of CBAM Rate and Determination of Carbon Price Relief) Regulations 2026 using the relevant exchange rate published by HMRC.

The relevant exchange rate will be that which applied for the calendar quarter prior to the tax point of the CBAM good. A calendar quarter means a period of 3 months ending at the end of March, June, September or December.

The exchange rates will be published at the beginning of the quarter and accessible via the CBAM collections page on °Ç¸ç³Ô¹Ï.

Where a CBAM good has been subject to multiple carbon prices in different jurisdictions, including carbon prices on precursor emissions, the correct exchange rate for each currency must be used.

In all cases, following conversion, the liable person must round down to two decimal places.