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New tax planned for carbon emissions if no Brexit deal

18 August 2020
Issue: 4757 / Categories: News

The Treasury has published a consultation to consider the operation of a carbon emissions tax were the UK not to obtain agreement with the EU to remain in the EU emissions trading system (EUETS) after 31 December 2020. If a link cannot be agreed, the UK will implement either an unlinked UK ETS or the carbon emissions tax from 1 January 2021.

Under the carbon emissions tax, installations in the EUETS whose emissions exceed their annual allowance would become liable to pay the tax on their emissions from 1 January 2021. The principle legislation for the new tax was laid in FA 2019, this consultation sets out how HMRC proposes to operate the tax if it were introduced, and how it might develop.

Responses should be made by 29 September.

Issue: 4757 / Categories: News
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