United Kingdom Tax Agency Seeks Comments on Draft Bill to Establish Carbon Border Adjustment Mechanism

The United Kingdom HM Revenue and Customs April 24 opened a consultation on a draft bill to establish the carbon border adjustment mechanism (CBAM), which would take effect Jan. 1, 2027. The bill includes measures to: 1) specify that the CBAM would apply from Jan. 1, 2027, to goods from specific industrial sectors, such as aluminum, cement, fertilizer, hydrogen, iron, and steel; 2) specify a minimum registration threshold of 50,000 British pounds (US$67,021) regarding CBAM goods imported into the U.K. over a given period of time, determined by forward looking and backward looking tests; 3) explain how CBAM rates will ...