What is the purpose of section 748 of the Corporation Tax Act 2010?

Section 748 establishes a formal clearance procedure allowing a company to submit particulars of completed or proposed transactions to HMRC and receive advance confirmation that no counteraction notice will be served. This gives companies certainty when planning transactions that might otherwise fall within the scope of counteraction provisions.

What are the time limits for HMRC under the section 748 clearance process?

HMRC must request any further information within 30 days of receiving the original particulars or subsequent information. They must also notify the company within 30 days of receiving all required particulars or further information whether they are satisfied that no counteraction notice should be served.

What happens if a company fails to provide further information requested by HMRC under section 748?

If the company does not supply the requested additional information within 30 days of HMRC's request, or within any longer period HMRC allow, then HMRC are under no obligation to continue with the clearance process. The company effectively loses the benefit of the clearance procedure.

Can a company apply for section 748 clearance for transactions not yet carried out?

Yes, section 748 allows a company to submit particulars of transactions it proposes to carry out as well as transactions already completed. This enables companies to obtain advance certainty from HMRC before proceeding with planned restructurings or other transactions that might attract a counteraction notice.

Corporation Tax Act 2010 section 748

Application for clearance of transactions

Section 748 provides a clearance procedure allowing a company to seek advance confirmation from HMRC that a transaction or transactions will not be subject to a counteraction notice.

A company may submit details of completed or proposed transactions to HMRC to obtain clearance that no counteraction notice will be served.
If HMRC consider the information insufficient, they must request further details within 30 days; failure by the company to respond within 30 days (or any extended period) means HMRC need not proceed.
HMRC must notify the company within 30 days of receiving the particulars (or all requested further information) whether they are satisfied that no counteraction notice should be issued.
The clearance process provides certainty for companies planning transactions that might otherwise fall within the scope of counteraction provisions.

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