ARTICLE · 11 JANUARY 2024

UK Carbon Border Adjustment Mechanism

Hillier Hopkins

Explore more from Hillier Hopkins

The UK government will in 2027 introduce a new carbon border adjustment mechanism, called UK CBAM, that will affect manufacturing businesses importing certain goods into the country.

United KingdomTax

The UK government will in 2027 introduce a new carbon border adjustment mechanism, called UK CBAM, that will affect manufacturing businesses importing certain goods into the country. This is yet another environmental requirement for importers, sitting alongside plastic packaging tax and the extended producer responsibility for packaging which are already in force to reduce the UK's carbon footprint.

UK CBAM will effectively be another tax on imported goods with a high carbon production footprint designed to eliminate what is called 'carbon leakage' that undermines efforts by the UK government to limit global warming.

Carbon leakage occurs when production is moved to other countries with differing levels of decarbonisation, pricing and regulation. Countries around the world are exploring similar carbon border taxes, with the EU introducing a scheme in October 2023.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

Related Articles

How Can The Chancellor Help The Retail And Leisure Sector?

United KingdomTax

Autumn Budget 2026

United KingdomTax

Herbert Smith Freehills Kramer LLP

The Autumn Budget 2026: Could Tax Changes Increase Financial Pressure On UK Construction, Manufacturing, And Farming Businesses?

United KingdomTax

Credit Where It's Due? The Government's Chosen Fix For The US LLC Double Tax Problem

United KingdomTax

Macfarlanes LLP

Employment Status For Tax Purposes: What’s Changed For Film And TV Crew?

United KingdomTax

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

Comparative Guide

Tax

Comparative Guide

Tax Disputes

See more popular content from

Tax

Treasury Committee calls for better and cheaper tax compliance

United KingdomTax

Has Your Mauritian Transfer Pricing Documentation Kept Pace With The Mauritius Revenue Authority?

On June 10, 2019, the Hon. Prime Minister and Ministry of Finance & Economic Development of Mauritius presented the 2019-20 Budget.

United KingdomTax

DLA Piper UK LLP

What Are Exit Taxes And How Do They Work?

As the UK anticipates its first Budget under Andy Burnham's premiership on 28 October 2026, questions arise about whether 'Manchesterism' will introduce an exit tax regime. This analysis examines how different jurisdictions—from Canada's deemed disposal system to France's targeted charges on substantial holdings—tax individuals leaving their borders, and explores what form a UK exit tax might take if implemented.

US FATCA In The UK - Updated HMRC Guidance Notes Released

Today HMRC released updated Guidance Notes on implementing FATCA in the UK.

United KingdomTax

Andy Burnham’s Property Tax Reform: What High Net Worth Individuals Need To Know

Burnham has consistently advocated for replacing council tax and stamp duty with a land value tax - an annual levy charged on the value of the land itself, rather than the buildings on it.

United KingdomTax

Capital Gains Tax And Private Equity Tax Under A Labour Government: What We Know So Far

Labour plans to defer major tax changes until the autumn Budget. Key potential changes include raising capital gains tax, altering private equity taxation, and possibly integrating capital gains and inheritance tax rules.

United KingdomTax

Remote Working And Permanent Establishment Risk: An Updated Guide

The OECD has updated its guidance on when remote working arrangements create a permanent establishment for tax purposes, introducing a new 50% threshold test and a 'commercial reason' analysis. These changes fundamentally alter how businesses must evaluate their cross-border home working policies and could result in unexpected tax obligations in jurisdictions where employees work remotely.

United KingdomTax

Travers Smith LLP

Frequently Asked Questions About IRS Clearance And Form 706-NA

UK executors and beneficiaries dealing with US assets face significant delays in obtaining IRS Transfer Certificates, with waiting times now extending to two or three years. This comprehensive FAQ addresses the critical questions surrounding Form 706-NA applications, US estate tax requirements, and the practical challenges of administering estates containing US shares and investments when the deceased was not a US citizen.

Lester Aldridge LLP

UK ‘Windfall’ Bank Tax Would Worsen An Already Complex System

UK banks face the prospect of a new windfall tax as campaigners push for additional levies on strong reported profits, while industry leaders warn of potential consequences for lending, investment, and the UK's position as a global financial centre. This analysis examines the practical implications of adding another layer to an already complex sector-specific tax regime that includes corporation tax, banking surcharge, and bank levy.

United KingdomTax

The Autumn Budget: Why Uncertainty Is Now The Biggest Cost For Business

As the Chancellor prepares to deliver the first Budget on 28 October 2026, business leaders face mounting uncertainty about potential tax changes, particularly around capital gains tax and property measures. With seven in 10 directors planning to freeze or cut investment, understanding how to build flexibility into transactions and succession plans has become critical for businesses, investors, and landlords navigating this period of speculation.

United KingdomTax