Guidance

How to apply for clearance or approval of a transaction from HMRC

Find out how to apply for clearances or approvals for transactions from HMRC, 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 advance clearance

HMRC’s Clearance and Counteraction Team handles requests where advance clearance is required under statutory provisions. You can request clearance under any of the following statutory provisions by email or post.

You should assess the risks of using email to send or to receive information. HMRC cannot guarantee the security of emails sent or received over the internet. If you use email to send information, you do so at your own risk.

Capital Gains Tax

Find the statutory provisions for Capital Gains Tax in:

Purchase of own shares

Purchase of own shares by unquoted trading companies is covered by (section 1044 Corporation Tax Act (CTA) 2010).

Statutory Demergers

Statutory demergers are covered by section 1091 Corporation Tax Act 2010:

Transactions in securities

Transactions in securities are covered by section 748 Corporation Tax Act 2010 and section 701 Income Tax Act (ITA) 2007:

Enterprise Investment Scheme

Find the statutory provision for Enterprise Investment Scheme (EIS) shares (acquisition by new company) (section 247 (1)(f) ITA 2007) in:

Company reorganisations involving intangible fixed assets

This type of company reorganisation is covered by section 831 CTA 2009.

Tax consequences of assigning a lease granted at under value

Find guidance on confirmation of the customer’s view of the tax consequences of assigning a lease granted at under value in PIM1222.

Loan relationships

Loan relationships for transfers and for mergers are covered by section 426 and section 427 (loan relationships: transfers) and section 437 (loan relationships: mergers) CTA 2009.

Derivative contracts

Derivative contracts for transfers and mergers are covered by section 677 (derivative contracts: transfers) and section 686 (derivative contracts: mergers) CTA 2009.

Targeted Anti Avoidance Rule 3

Find the statutory provision for Targeted Anti Avoidance Rule 3 for Capital Gains in the Targeted Anti Avoidance Rule 3 (Capital Gains) section 184G and section 184H TCGA 1992.

Cross-border transfers

Find the statutory provision for cross-border transfer of a loan relationship, derivative contract or intangible fixed assets in section 117(4) Taxation (International and Other Provisions) Act 2010.

Continuity of Seed Enterprise Investment Scheme (SEIS)

Find the provisions for continuity of Seed Enterprise Investment Scheme relief under section 257HB Income Tax Act 2007 as updated by Finance Act 2012.

Requesting advance clearance under statutory provisions by email

You can request advance clearances by sending an email to reconstructions@hmrc.gov.uk. You do not need to send a paper copy.

Attachments should be no larger than 2MB. Do not send self-extracting zip files as HMRC software will block them.

If possible we would like to reply by email, but we 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 or your company adapt this wording as necessary.

If you have doubts about the authenticity of an email you receive which claims to come from the Clearance and Counteraction Team, email reconstructions@hmrc.gov.uk to check. You do not need to send a paper copy.

Requesting advance clearance under statutory provisions by post

If you cannot use email send your letter to the Clearance and Counteraction Team to:

BAI Clearance
HMRC
BX9 1JL

Make it clear at the top of your letter which clearances you’re asking for. HMRC will reply to all the provisions outlined in your letter.

Market sensitive applications

HMRC considers information that could affect the price of a stock market quoted company, and information concerning the financial affairs of well-known individuals, as market sensitive.

These applications are handled by fewer people and are subject to extra security but otherwise treated in the same way as non-market sensitive applications.

If you send a market sensitive application, you should mark it for the attention of the team leader.

Be aware that the team receives high volumes of applications and has 30 days to reply. Keep this in mind when planning transactions.

Transfers of long-term business

Send applications for a 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

Transactions in shares or debentures

The Treasury Consents regime was repealed by Finance Act 2009. Events or transactions taking place on or after 1 July 2009 are subject to a new reporting regime, details can be read in HMRC’s International Manual.

Transfer pricing (advance pricing agreements)

HMRC has run an Advance Pricing Agreements (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 Advance Pricing Agreements legislation, and how HMRC operates the UK Advance Pricing Agreements 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.

Notification of 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:

Email a clearance application for Controlled Foreign Companies

If the UK group has a Customer Compliance Manager or Customer Co-ordinator, you can email clearance applications and supporting documents (such as accounts) to them.

If it does not, you can email 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

Non-statutory clearance or approval

You can find information on the 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

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 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 on the Legislation.gov.uk website, you should use Annex B of the Non-Statutory Clearance 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 make sure you have proof, such as the ‘Authorising your agent (64-8)’ or temporary authorisation to allow HMRC to deal with your tax adviser (COMP1) to act on behalf of your client and where possible attach them to your application.

Apply by email

You can send this by email to businessinvestmentrelief@hmrc.gov.uk. You do not need to send a paper copy.

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. You do not need to send a paper copy.

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.

You can call HMRC if you have any queries about Business Investment Relief on Telephone: 03000 565 250, the phone line is open from Monday to Friday 8.30am to 16:30pm.

Find out about call charges.

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 Enterprise Investment Scheme, Seed Enterprise Investment Scheme, Social Investment Tax Relief and Venture Capital Trust schemes
  • statutory compliance statements from companies under 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 Shares Loss Relief — these are dealt with by the tax office dealing with the claimant.

You can contact the team by email: enterprise.centre@hmrc.gov.uk or by writing to:

Venture Capital Relief Team
HM Revenue and Customs
WMBC
BX9 1BN

You can also leave a telephone message to request a call back from the VCRT. Telephone: 0300 123 3440.

Extra Statutory Concessions

General advice on specialist technical areas of taxation

Notices for VAT, and Customs and Excise

Revenue and customs briefs — policy changes resulting from legislation, litigation or policy reviews

Statements of Practice

Published 28 June 2011
Last updated 8 February 2023 + show all updates
  1. We have updated and replaced the section 'Business Investment Relief provisions' with 'Get Business Investment Relief Advance Assurance' including guidance on how to apply by email or post.

  2. The postal address to send non-statutory clearance applications to has been updated.

  3. The address for transfers of long term business has been updated. An address for non-statutory clearance applications has been added.

  4. The address for the Venture Capital Relief Team has been updated.

  5. Guidance on investments in the UK for Enterprise Investment Schemes, Seed Enterprise Investment Schemes and Venture Capital Trust schemes has been updated.

  6. Qualifying life assurance policies section has been replaced with the Transfers of long-term business section.

  7. The address of where to send non-statutory clearances has been updated.

  8. The address to send non-statutory clearance or approval applications has been updated.

  9. The address for the Clearance and Counteraction Team has been updated.

  10. Under headings 'Company migrations' and 'Controlled Foreign Companies' there are updates to addresses and email link.

  11. The address and telephone number have been revised under Section 'Investing in the UK'.

  12. Contact details for Expression of Interest in an APA and for making an APA application have been removed.

  13. Contact details for Transfer pricing (advance pricing agreements) has been updated.

  14. Under the heading 'Business Investment Relief' the address has been updated.

  15. Small Company Enterprise Centre Telephone number changed to 0300 123 1083.

  16. Amendments made to 'Statutory applications for advance clearance' section.

  17. First published.