HMRC opens technical consultation on draft CBAM primary legislation
HMRC has launched a technical consultation on draft primary legislation for the carbon border adjustment mechanism (CBAM), which will be implemented from 1 January 2027. The consultation, running until 3 July 2025, focuses on technical implementation rather than policy design. The legislation aims to place a carbon price on specified imports from the aluminium, cement, fertilisers, hydrogen, and iron and steel sectors at risk of carbon leakage. The draft includes provisions for registration requirements, tax point determination, compliance mechanisms, and carbon price relief calculations. HMRC has also published accompanying explanatory notes, a tax information impact note, and a policy update to provide clarity for affected businesses.