Users' questions

What is HMRC clearance?

What is HMRC clearance?

HMRC is there to impose a tax charge whenever it can. The clearance system will help defend a tax payer against claims from HMRC that the transaction was set up to avoid tax. There are many HMRC clearances available for different set of circumstances.

How long does it take to get clearance from HMRC?

HMRC will usually reply within 28 days, but where difficult or complicated issues are involved it may take longer to reply. If this is the case, HMRC will acknowledge your request and tell you when you can expect a full reply. VAT non-statutory clearance requests are currently taking around 8 weeks to process.

How do I apply for clearance or approval of a transaction from HMRC?

You can request advance clearances by sending an email to [email protected]. You do not need to send a paper copy. Attachments should be no larger than 2MB.

Is HMRC clearance required for a share for share exchange?

HMRC clearance as to tax status of a share for share exchange. The company can apply to HMRC for a tax clearance to the effect that there is no capital gains tax arising when shareholders swap shares in one company for another company. The clearance can also confirm that there is no income tax liability.

What does ita07 / s701 require HMRC to notify?

ITA07/S701 (4) and (5) require HMRC to notify the person whether they are satisfied that the transaction or transactions as described in the particulars were or will be such that no counteraction notice ought to be served (“clearance”).

How does 701 application for clearance of transactions work?

701 Application for clearance of transactions (1) A person may provide the Commissioners for Her Majesty’s Revenue and Customs with particulars of a transaction or transactions effected or to be effected by the person in order to obtain a notification about them under this section.

When is the non statutory clearance service not available?

In addition, the non-statutory clearance service is not available if there are no genuine points of uncertainty; or if HMRC is checking the taxpayer’s tax position for the period in question; or if any related return for that period is final.