How to apply for clearance or approval of a transaction from HMRC
How to apply to HMRC for statutory and non-statutory clearances or approvals for transactions, and where to send applications.
HMRC will not give clearances or advice for the application of the ‘settlements legislation’ in Chapter 5 Part 5 Income Tax (Trading and Other Income) Act 2005 or the tax consequences of executing non-charitable trust deeds or settlements.
Clearances and the general anti-abuse rule
HMRC will not give either formal or informal clearances that the general anti-abuse rule (GAAR) does not apply.
No assurances about the tax treatment of a transaction are given where, in HMRC’s view, the arrangements constitute tax avoidance.
HMRC will continue to discuss commercial arrangements with large businesses and wealthy individuals and confirm where appropriate that it does not regard particular arrangements as tax avoidance.
Code of Practice on Taxation for Banks
Where a bank adopts the Code of Practice on Taxation for Banks, it’s agreeing not to enter into any tax avoidance arrangements that the GAAR may apply to.
This does not mean that every arrangement outside the GAAR is accepted by HMRC as within the code.
Customer Compliance Managers will continue to give HMRC’s view whether a transaction is code compliant, if asked by a bank under the code.
Statutory clearance or approval
Statutory applications for clearance
HMRC’s Clearance and Counteraction Team handles requests for clearance under specific statutory provisions.
Applying for statutory clearance is not mandatory. Customers may apply to HMRC before a proposed transaction for certainty about the tax treatment. In limited circumstances, customers can also apply for statutory clearance after the transaction has taken place.
The statutory clearances are concerned with anti-avoidance provisions relating to company reorganisations.
Check the provisions for your situation and apply for statutory clearance for a transaction.
Transfers of long-term business
Send applications for clearance under Section 132 Finance Act 2012 to:
HMRC
CS&TD Business, Assets and International
BAI Financial Services Team
Queen Elizabeth House
1 Sibbald Walk
Edinburgh
EH8 8FT
Transfer pricing (advance pricing agreements)
HMRC has run an Advance Pricing Agreement (APA) programme since 1999 to assist businesses in identifying solutions for complex transfer pricing issues.
HMRC issued Statement of Practice 2 (2010) as general guidance on how HMRC interprets the APA legislation, and how HMRC operates the UK APA programme.
Company migrations
You must tell HMRC about a company migration and request approval of arrangements of tax liabilities in accordance with section 109B to 100F Taxes Management Act 1970.
For notification and approval of arrangements for payment of tax liabilities in accordance with section 109B to 109F Taxes Management Act 1970 (previously section 130 Finance Act 1988), see Statement of Practice 2 (1990).
Email applications for clearance to clearances.companymigration@hmrc.gov.uk, or send them by post to:
HM Revenue and Customs
Business, Assets and International
Base Protection Policy Team
NE98 1ZZ
Controlled Foreign Companies
You can send applications for clearance in relation to Controlled Foreign Companies (CFC) in accordance with:
- part 9A Taxation (International and Other Provisions) Act 2010 (the new CFC rules)
- section 747 to 756 and Schedules 24 to 26 Income and Corporation Taxes Act (ICTA) 1988 (the old CFC rules)
Email a clearance application for Controlled Foreign Companies
Where you email a clearance application for Controlled Foreign Companies depends on whether the UK group has a Customer Compliance Manager or Customer Co-ordinator, or neither.
If the UK group:
- has a Customer Compliance Manager or Customer Co-ordinator, you can email Controlled Foreign Companies clearance applications and supporting documents (such as accounts) to them
- does not have a Customer Compliance Manager or Customer Co-ordinator you should email Controlled Foreign Companies clearance applications to cfcs.mailbox@hmrc.gov.uk
We will reply by post unless you ask us to reply by email in your application.
Post a clearance application for Controlled Foreign Companies
Send applications by post to:
HM Revenue and Customs
Business, Assets and International
Base Protection Policy Team
NE98 1ZZ
Investments in the UK
Inward Investment Support service
If your business is based outside the UK and you’re thinking of investing in the UK, you should use the Inward Investment Support service to discuss the tax implications of your investment.
Get Business Investment Relief Advance Assurance
If you want to ask HMRC for its view on whether a proposed investment can be treated as a qualifying investment as defined in section 809VC Income Tax Act (ITA) 2007, you should use Annex B of the Non-Statutory Clearance Service guidance. You can ask for Business Investment Relief Advanced Assurance by email or post.
If you are applying on behalf of an applicant and you are not the authorised agent, you can use the ‘Authorising your agent (64-8)’ form or temporary authorisation to allow HMRC to deal with your tax adviser (COMP1) to get authorisation to act on behalf of your client. Where possible attach this proof to your application.
Apply by email
You can send this by email to businessinvestmentrelief@hmrc.gov.uk.
Attachments should be no larger than 2MB.
Do not send self-extracting zip files as HMRC software will block them.
If you would like us to reply by email, we’ll need your permission to do so by including the following statement:
‘I confirm that our client understands and accepts the risks associated with email and that they are happy for you to send information concerning their business or personal details to us by email. I also confirm that HMRC can send emails to the following address (or addresses).’
If you’re making the application on behalf of yourself update the wording as needed.
If you have doubts about the authenticity of an email you receive which claims to have come from the Business Investment Relief Team, email businessinvestmentrelief@hmrc.gov.uk.
Apply by post
If you prefer not to use email, send your letter to the Business Investment Relief Team to:
Wealthy and Mid-sized Business Compliance
HM Revenue and Customs
BX9 1BN
Make it clear at the top of your letter what you are applying for.
Venture capital schemes
These schemes are:
- Enterprise Investment Scheme
- Seed Enterprise Investment Scheme
- Social Investment Tax Relief
- Venture Capital Trust scheme
HMRC administers the tax-advantaged venture capital schemes mainly through a specialist Venture Capital Reliefs Team that deals with:
- general enquiries from companies about the conditions of the Enterprise Investment Scheme, Seed Enterprise Investment Scheme, Social Investment Tax Relief and the Venture Capital Trust scheme
- requests from companies for informal advance clearance in respect of a proposed investment that they will meet the requirements of the Enterprise Investment Scheme, Seed Enterprise Investment Scheme, Social Investment Tax Relief and Venture Capital Trust schemes
- statutory compliance statements from companies under the Enterprise Investment Scheme, Seed Enterprise Investment Scheme and Social Investment Tax Relief
- the statutory approval of companies as Venture Capital Trusts
The Venture Capital Reliefs Team does not deal with claims by investors to Income Tax or capital gains reliefs under any of the 4 schemes, and claims to Share Loss Relief — these are dealt with by the tax office dealing with the claimant.
You can contact the team by emailing enterprise.centre@hmrc.gov.uk or by writing to:
Venture Capital Reliefs Team
HM Revenue and Customs
WMBC
BX9 1QL
You can also leave a telephone message to request a call back from the Venture Capital Reliefs Team.
Telephone: 0300 123 3440
Non-statutory clearance or approval
You can find information on the Non-Statutory Clearance Service offered by HMRC for customers and their advisers who need clarification on guidance or legislation relating to a specific transaction.
Non-statutory clearance applications should be sent to:
Wealthy
HM Revenue and Customs
BX9 1BN
Email: nonstatutoryclearanceteam.hmrc@hmrc.gov.uk
Get more information
General advice on specialist technical areas of taxation
Revenue and customs briefs — policy changes resulting from legislation, litigation or policy reviews