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News - 2 October 2013

Laws to stop metal theft come into force.

nder the new Scrap Metal Dealers Act 2013, all scrap metal dealers will need to apply to their local council for a licence to operate under these new rules. The Act is designed to clamp down on rogue traders, and will also give local authorities and police new powers to inspect premises where they suspect illegal activity.

Councils will be able to refuse or revoke licences if a dealer is deemed unsuitable.

Crime Prevention Minister Jeremy Browne said:
“Metal theft costs the UK economy around £220 million a year and it has a huge impact on our communities - from disrupted rail services to desecrated war memorials and damaged church roofs.”

Lavinia Newman, founder of ABDS comments:
“This new legislation will help tighten the net around rogue dealers who flout the rules and wilfully purchase stolen metal, while reforming the system to support legitimate businesses. Metal thieves cause misery for thousands of people, whether targeting the rail network, power cables or telecommunications. These changes signal the introduction of a more robust licensing scheme to be monitored by local authorities.”

The Act demands a greater level of awareness and responsibility from traders, ensuring they verify who they are doing business with, but it also protects law abiding recyclers from unscrupulous traders.

Registered scrap metal dealers have to submit an application on or by 15 October, or their deemed licence will lapse on 16 October. A deemed temporary licence which has lapsed does not give rise to a right to appeal. The dealer must submit an application and wait for a licence to be issued before they can trade legally.

For those who are looking for a more personal approach on a range of issues, including Business strategy, business recovery, sale or acquisition, VAT and all other tax strategies, contact us at ABDS.

ABDS Chartered Certified Accountants of Southampton.
Tel: 023 8083 6900  E-mail:

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