David Tipping examines the circumstances in which a taxpayer or adviser can obtain a clearance from HMRC in advance of entering into a transaction.
A client may want to know in advance whether HMRC is going to challenge a particular transaction. Sometimes this can be achieved by obtaining a clearance from HMRC, which allows a client to know its view of the law ahead of time.
However, such clearances are only obtainable in certain circumstances. This article firstly discusses some of the most common circumstances when a taxpayer can obtain a clearance from HMRC. It then outlines the non-statutory clearance process that applies when there is no clearance provision provided for in the legislation.
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Statutory clearances
There are a number of provisions which provide for clearances. Some of the most common applications are identified below.
