What is the procedure for applying to HMRC for advance clearance under section 1045 of the Corporation Tax Act 2010?

The application must be submitted to HMRC in writing and must contain full particulars of the relevant transactions, including what the proposed transactions involve, who the parties are, and the commercial context. Full and accurate disclosure of all material facts and circumstances is essential to obtain a valid clearance.

What time limits apply to HMRC when processing an advance clearance application under section 1045?

HMRC must request any further information within 30 days of receiving the application or previously requested particulars. They must then notify the applicant of their decision within 30 days of receiving the application or, where further information was requested, within 30 days of that information being provided.

What happens if an applicant fails to respond to HMRC's request for further information under section 1045?

If the applicant fails to provide requested further particulars within 30 days, or within any longer period HMRC may allow, HMRC are not obliged to continue processing the application. In practical terms, failure to respond promptly could mean the advance clearance application lapses entirely.

When is an HMRC advance clearance notification void under section 1045?

A clearance notification is void if the particulars provided in the application did not fully and accurately disclose all facts and circumstances material to HMRC's decision. The company cannot rely on clearance obtained on the basis of incomplete or inaccurate information, so thorough and transparent applications are essential.

Corporation Tax Act 2010 section 1045

Advance clearance: supplementary

Section 1045 sets out the procedural requirements, time limits and consequences of non-compliance when applying to HMRC for advance clearance that a payment will not be treated as a distribution.

Applications must be made in writing and include full particulars of the relevant transactions.
HMRC may request further information within 30 days of receiving the application or any previously requested particulars.
HMRC must notify their decision within 30 days of receiving the application or, where further information was requested, within 30 days of that information being provided.
If the application does not fully and accurately disclose all material facts and circumstances, any clearance notification issued by HMRC will be void.

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