As mentioned in CIRD42030, there are three further conditions to be satisfied before tax neutral treatment under FA02/SCH29/PARA85 is due:
1. There is a provision for companies to seek advance clearance
that the third condition above (the commercial purpose test) is
satisfied. The Anti-Avoidance Group (Intelligence), Clearance and
Counteraction Team deals with all clearance applications and the
procedure is described in
2. Where a company submits tax computations on the basis that tax neutral treatment under paragraph 85 is available and there is no record of a clearance application, inspectors should send a report and the file to the Anti-Avoidance Group (Intelligence), Clearance and Counteraction Team.