Extension of clearances HM Revenue & Customs provide to business owners

At Pre-Budget Report 2007, as part of the review of links with Large Business, we announced that from April 2008 HM Revenue & Customs (HMRC) would provide business with our view of the tax consequences of significant commercial issues wherever there is uncertainty, regardless of when the legislation was enacted. We also committed to responding to clearance applications within 28 days as the norm.

Today we announce that the clearances service has been extended for a trial period to business owners in relation to inheritance tax business property relief.

Guidance on the clearances process and how to apply is available on the HMRC website.

• IHT Clearance service for business users

For all business owners

As with other clearances we will:

• remove the four Finance Act restriction that inheritance tax clearance applications are subject to under Code of Practice 10 (COP10) where the application relates to the availability of business property relief
• expect applicants to demonstrate the commercial significance of the transaction that causes genuine uncertainty
• expect them to identify what aspect of the law or HMRC practice they consider to be uncertain
• respond within 28 calendar days, as the norm

Contacts

All business owners and those acting on their behalf should send their applications relating to inheritance tax business property relief to:

IHT-BPR Clearances Team
Ferrers House
Castle Meadow Road
Nottingham
NG2 1BB

Email: IHT-BPR Clearances Team

Other guidance on information and advice

COP10 and VAT Notice 700/6 will remain in place for our customers who are not covered by the new clearances process to provide guidance on how to seek information and advice from HMRC. We will be reviewing these documents over the next year to provide more consistent guidance on the information and advice available to our customers.

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