# Finance Act 2026, Paragraph 34: Penalties payable in connection with this Schedule

Extent: E+W+S+N.I.

(1) Schedule 41 to FA 2008 (penalties: failure to notify and certain VAT and excise wrongdoing) is amended in accordance with sub-paragraphs (2) and (3).
(2) In the table in paragraph 1 (failure to notify etc), after the entry related to climate change levy, insert—
“
Carbon border adjustment mechanism
Obligation of a person under paragraph 2 of Schedule 17 to FA 2026.
”
(3) In paragraph 7, after sub-paragraph (9) insert—
“(10) In the case of a relevant obligation under paragraph 2 of Schedule 17 to FA 2026 (which relates to the carbon border adjustment mechanism), the potential lost revenue is the amount of the tax (if any) for which P is liable for the period—
(a) beginning with the end of the period specified in paragraph 2(4) of Schedule 17 of FA 2026, and
(b) ending with the day on which P registers under paragraph 2 of Schedule 17 to FA 2026 or HMRC otherwise becomes fully aware of P’s obligation to register.”
(4) No failure to comply with an obligation under paragraph 2 of this Schedule “involves an offshore matter” for the purposes of Schedule 41 to FA 2008 (see paragraph 6A of that Schedule).
(5) Paragraph 16(1) of Schedule 41 to FA 2008 (penalties: failure to notify etc) has effect in its application to CBAM as if for “shall” there were substituted “may”.

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Source: https://www.legislation.gov.uk/ukpga/2026/11/schedule/17/paragraph/34 (the official version)
Page: https://openlegislation.uk/finance-act-2026/schedule-17/paragraph-34
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.