CTM36880 - Particular topics: transactions in securities: clearance applications under ITA07/S701 and ICTA88/S707

A person may apply, before or after the transactions have taken place to the Commissioners for HMRC for clearance that they will not be subject to counteraction

Where the Company involved is dealt with by one of the Large Business Service offices the Clearance and Counteraction team liaise with the relevant case director/manager in considering clearance applications see Protocol 1 June 2006 – Working with the Clearance & Counteraction team If a clearance application is received in a local office please forward it to:

Advise the agent or company that you have done so in the following terms:

"I refer to the application for clearance under ITA07/S701 and/or ICTA88/S707 sent to me on (date). Please note that all such applications must be made to the Commissioners for HMRC and not to this office. I have sent the application to the AAG Clearance & Counteraction Team based in 22 Kingsway, London WC2B 6NR. I am advised that the 30 day time limit within which the they are expected to reply will begin when the application is received by them."

Please do not send your file with the clearance application.

Applications for clearances under any of the provisions listed below should also be sent to the Clearance and Counteraction Team.

AAG will give or refuse a clearance or request such further information as is necessary to enable this to be done, within thirty days. Any request from the Clearance and Counteraction Team for information should be dealt with urgently.

The Clearance and Counteraction Team will provide you with information about clearances and the Board’s decision. Cases should be followed up in accordance with CTM36885 or in accordance with any specific instructions from the Clearance and Counteraction Team.

For corporation tax purposes, clearance is given under ICTA88/S707. For income tax purposes, clearance is given under ICTA88/S707 for 2006-07 and earlier years and under ITA07/S701 for 2007-08 and later tax years. If HMRC issue a clearance under ICTA88/S707 or ITA/S701 which refers by mistake to the wrong provision, HMRC will treat it as if it referred to the correct provision.