Scrap Metal Dealer Licence Scotland

Anyone dealing in scrap metal in Scotland must comply with strict legal requirements, including obtaining the appropriate licence. The rules are primarily set out in the Civic Government (Scotland) Act 1982, which governs scrap metal dealing and related activities.

This guide explains who needs a scrap metal dealer licence in Scotland, how to apply, and the key compliance obligations.

Do You Need a Scrap Metal Dealer Licence in Scotland?

If you buy or sell scrap metal in Scotland – including motor salvage – you are legally required to hold a scrap metal dealer’s licence.

This applies to:

• Scrap metal merchants operating from fixed premises
• Businesses involved in motor salvage or dismantling vehicles
• Individuals collecting or trading scrap metal

In some cases, businesses dealing in second-hand goods containing metal (such as vehicles) may also need a second-hand dealer’s licence in addition to a scrap metal licence.

Types of Scrap Metal Licence

There are two main types of licence available:

• Metal Dealer’s Licence (Fixed Premises):
  Required for businesses operating from a specific site.
• Itinerant Metal Dealer’s Licence:
  Required for individuals or businesses that travel from place to place collecting or dealing in scrap metal.

Choosing the correct licence is essential, as operating without the appropriate authorisation can lead to enforcement action.

How to Apply for a Scrap Metal Licence

Applications must be submitted to your local authority, such as Glasgow City Council or City of Edinburgh Council, depending on where your business is based.

The application process typically requires:

• Your Unique Taxpayer Reference (UTR)
• Displaying a public notice of your application
• Disclosure of relevant personal and business information

If you intend to operate from premises, you may also need planning permission, which should be confirmed before submitting your application.

Record-Keeping Requirements

Scrap metal dealers in Scotland are subject to strict record-keeping obligations.

Licence holders must:

• Maintain detailed records of all transactions
• Use either a serially numbered book or an electronic recording system
• Retain records for a minimum of three years
• Ensure records are available for inspection by authorities

These requirements are designed to improve traceability and reduce unlawful trading.

Cash Payments Are Prohibited

Under Scottish law, scrap metal transactions cannot be conducted in cash.

All payments must be made via:

• Cheque, or
• Electronic bank transfer

This ensures a clear audit trail for all purchases and sales, helping authorities monitor the industry effectively.

Common Compliance Issues

Businesses operating in the scrap metal sector often encounter challenges such as:

• Applying for the wrong type of licence
• Failing to maintain adequate transaction records
• Overlooking planning permission requirements
• Not obtaining additional licences (e.g. second-hand dealer licence where required)

Given the complexity of the regulatory framework, it is important to ensure full compliance from the outset.

Need Advice on Scrap Metal Licensing?

The legal requirements for scrap metal dealing in Scotland can be detailed and, in some cases, onerous. Failure to comply can result in licence refusal, suspension, or enforcement action.

If you are unsure about your obligations or need assistance with an application, seeking legal advice can help ensure your business operates within the law.

If you require support navigating Scotland’s licensing regime, our team is ready to assist. Get in touch to discuss how we can help.

The information and opinions contained in this blog are for information only.  They are not intended to constitute advice and should not be relied upon or considered as a replacement for advice.  Before acting on any contained in this blog, please seek solicitor’s advice from Gilson Gray.