Corporation Tax Act 2010 section 1094

Decision of the Commissioners or tribunal

Section 1094 sets out the time limits within which HMRC must respond to advance clearance applications for demerger distributions or payments, and the process for referring the matter to the tribunal if clearance is refused or HMRC fails to respond.

• HMRC must notify their decision on a demerger clearance application within 30 days of receiving it, or within 30 days of the applicant complying with any request for further information.
• If HMRC refuse clearance or fail to respond within the required time, the applicant may refer the matter to the tribunal, which then makes a binding decision in place of HMRC.
• The right to refer to the tribunal must be exercised within 30 days of HMRC's refusal or the deadline by which HMRC should have responded.
• Any clearance granted — whether by HMRC or the tribunal — is automatically void if the applicant did not fully and accurately disclose all material facts and circumstances in their application.