CIRD42110 - Intangible assets: company reorganisations: advance clearances: requirements, time limits and appeals

Legal requirements

The legal requirements for the application and its processing are that the clearance application:

• must be in writing,
• must contain particulars of the operations to be effected.

HMRC then has 30 days from the receipt of the application to either:

• by notice require the applicant to supply further particulars for the purpose of enabling it to make its decision,
• advise the applicant of its decision.

Once any further information is received, then the clock starts again, and HMRC has thirty days to respond either to issue a further information notice, or notify their decision to the applicant. If the applicant does not supply any requested information within thirty days, then HMRC need not proceed further on the application.

If HMRC notify the applicant that they are not able to give the required clearance, or fail to respond within the thirty day time limit advising the applicant of their decision (assuming no information is outstanding), then the applicant has a further thirty days to ask for the matter to be referred to the tribunal. In effect, their decision then stands in place of any decision by HMRC.

If any particulars furnished in accordance with FA02/SCH29/PARA88 do not fully and accurately disclose all facts and considerations material for the decision of the HMRC, or the tribunal, any resulting notification of their decision is void.