Citation, commencement and effect

1.—(1) These Regulations may be cited as the Carbon Border Adjustment Mechanism (Transitory Provision) Regulations 2026 and come into force on 1st January 2027.

(2) Regulation 2(2) has effect in relation to any person who triggers registration(2) in 2027.

(3) Regulation 2(3) and (4) have effect in relation to charges to CBAM arising in the period beginning with 1st January 2027 and ending with 30th June 2028.

(4) Regulation 3 has effect in relation to returns in respect of accounting periods ending with or before 30th June 2028.

Modifications to Schedule 17 to the Finance Act 2026

2.—(1) Schedule 17 to the Finance Act 2026 has effect with the following modifications.

(2) In paragraph 2 (duty to register with HMRC) , in sub-paragraph (4) “31st January 2028” is treated as substituted for the words from “the period of 30 days” to the end.

(3) In paragraph 6 (payment and accounting periods), the following is treated as substituted for sub-paragraphs (2) and (3)—

“(2) The accounting periods are—

(a)for 2027, the period beginning with 1st January 2027 and ending with 31st December 2027;

(b)for 2028—

(i)the period beginning with 1st January 2028 and ending with 31st March 2028;

(ii)the period beginning with 1st April 2028 and ending with 30th June 2028.

(3) Payment in respect of an accounting period must be made—

(a)in respect of the accounting period ending with 31st December 2027, before the end of 31st May 2028;

(b)in respect of the accounting period ending with 31st March 2028, before the end of 31st July 2028;

(c)in respect of the accounting period ending with 30th June 2028, before the end of 29th September 2028.”.

(4) In paragraph 7 (returns), the following is treated as substituted for sub-paragraph (2)—

“(2) A return under this paragraph must be made—

(a)in respect of the accounting period ending with 31st December 2027, before the end of 31st May 2028;

(b)in respect of the accounting period ending with 31st March 2028, before the end of 31st July 2028;

(c)in respect of the accounting period ending with 30th June 2028, before the end of 29th September 2028.”.

Modification to Schedule 24 to the Finance Act 2021

3. In Schedule 24 to the Finance Act 2021(3) (penalties for failure to make returns etc), in the Table in paragraph 2(1), the following is treated as substituted for item 6(4)—