Extension of clearances HM Revenue and Customs provide to all our business customers

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 extended clearances service has been rolled out to all business customers

This includes:

• business customers whose tax affairs are handled by the Large Business Service (LBS)
• business customers, across all sectors, whose tax affairs are handled by offices elsewhere in the department

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

For all businesses

We will:

• remove the four Finance Act restriction that direct tax clearance applications were subject to under Code of Practice 10 (COP10)
• ask them to demonstrate the commercial significance of the transaction where the clearance relates to direct tax legislation older than the last four Finance Acts
• respond within 28 calendar days, as the norm

Contacts

Business customers whose tax affairs are handled by the LBS should continue to send their applications to their Client Relationship Manager (CRM).

All other business customers should send their applications to:

HMRC Clearances Team
Alexander House
21 Victoria Avenue
Southend-on-Sea
Essex SS99 1BD

Email: HMRC 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.