Anyone who buys, sells or stores scrap metal in England or Wales needs a scrap metal dealer licence from the council, and nobody may buy scrap metal for cash. Scotland has its own dealer licence with the same cash ban. (GOV.UK: scrap metal dealer licence; Scotland: the 2015 Act notes)
This guide is not legal advice; the official links give the full rules.
England and Wales: the council licence
A scrap metal dealer in England or Wales must hold either a site licence or a mobile collector's licence, issued by the council. A site licence must be displayed in a prominent place, accessible to the public, at each site it names; a mobile collector's licence must be displayed on any vehicle used in the business so it can be read from outside. Licences are renewed every three years, and since 4 April 2022 renewal takes an HMRC tax check. (GOV.UK)
A dealer must not buy scrap metal for cash — that is a criminal offence — and must not receive scrap without verifying the person's name and address. Records of every receipt and disposal must be kept for three years, open to council and police inspection. Dealing without a licence can mean a £5,000 fine, and a council can revoke a licence and close unlicensed sites. (GOV.UK; the cash ban is section 12 of the Scrap Metal Dealers Act 2013)
Scotland: the metal dealer's licence
In Scotland a scrap metal dealer needs a metal dealer's licence from the council. Since the Air Weapons and Licensing (Scotland) Act 2015 every dealer must be licensed, paying cash is not allowed — payment is by cheque or bank transfer — and dealers must keep fuller records of what they buy and who from. (the 2015 Act's notes)
Having scrap collected
If a carrier collects scrap metal or other waste for you, check them on the public register first: check a waste carrier is registered.
Sources
Checked 3 November 2026.
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