- The Terminal Markets Order (TMO) provides for the VAT zero-rating of certain wholesale commodity transactions made by members of certain commodity exchanges.
- In July 2023, HM Treasury consulted on modernising the legislation setting out the VAT treatment of transactions within the scope of the TMO.
- The amendments are intended to reflect how the markets now operate and provide greater certainty, without amending the policy or scope of the TMO.
- The consultation also included proposals to include the UK Emissions Trading Scheme in the scope of the TMO.
- Finance (No.2) Act 2024 included legislation to enable the amendment of the TMO (by way of statutory instrument).
- The government has issued its response to the consultation, indicating that it will continue to develop the legislative framework for reform, and will engage with interested parties.
- Timing: the government issued its response to the consultation on 28 April 2025.
Resources (click to open)
- Terminal Markets Order (Deloitte TaxScape, March 2024)
- Legislative reform of the Terminal Markets Order: Consultation (HM Treasury, consultation, July 2023), response paper (April 2025))
