Scrap Metal Licences

The Scrap Metal Dealers Act 2013 (the Act) created a regulatory regime for scrap metal recycling and vehicle dismantling industries.

A scrap metal dealer must obtain a licence from the local authority in order to operate; it is an offence to operate without a licence.

There are 2 types of licence specified in the Act:

Site Licence

A site licence will be issued by the local authority in whose area a scrap metal site is situated and is required at all of the sites at which the licensee carries out the business as a scrap metal dealer. A site manager needs to be named for each site.

In doing so, they will be permitted to operate from those sites as a scrap metal dealer, including transporting scrap metal to and from those sites from any local authority area.

Collector’s Licence

A collector’s licence will authorise the licensee to operate as a collector in the area of the issuing local authority, permitting them to collect any scrap metal as appropriate. This includes commercial as well as domestic scrap metal.

The licence does not permit the collector to collect from any other local authority area; a separate licence would need to be obtained from each local authority in whose area the individual wished to collect in.

A licence also does not authorise the licensee to carry on a business at a site within any area – should a collector wish to use a fixed site; they would need to obtain a site licence from the relevant local authority. There is no restriction as to the location where the collector may transport and sell their metals.

To apply for this licence please read our guidance and complete the scrap metal dealer’s application form.

Apply for a licence

To make changes to an existing licence, please complete an Application to change a scrap metal licence form instead.

Fees and charges

Current fees and charges can be found on our Fees and charges page.

Summary of the Act

The Act defines a “scrap metal dealer” as someone carrying out a business which consists wholly or in part of buying or selling scrap metal, whether or not the metal is sold in the form in which it was bought. A manufacturing business that sells scrap metal created only as a by-product of the processes it uses or because it has a surplus of material is not caught by the definition.

It further states that “scrap metal” includes:

• any old, waste or discarded metal or metallic material
• any product, article or assembly which is made from or contains metal and is broken, worn out or regarded by its last holder as having reached the end of its useful life.

The following is not considered to be “scrap metal”:

• gold
• silver
• any alloy of which 2 per cent or more by weight is attributable to gold or silver.

Tax Conditionality

The government has introduced new tax requirements for renewals of Scrap Metal licences from 4 April 2022. To view the full guidance on what is required for all renewals and new applications please see Tax check factsheet – GOV.UK.

It is also advisable for all new applicants to look at the requirements to ensure they are set up correctly.