ATCS06200 | Governance and legal: how long a clearance is valid for

An initial clearance is valid for 5 years from the date of issuance but can be extended by way of further application.

While a clearance is valid, HMRC will be bound by the clearance. This means that customers can rely on the determination of the tax treatment given by HMRC for 5 years from the date of issuance, if the following statements are all true:

• the facts and critical assumptions provided by the customer are true

• there are no changes to the statute to which the matter applies

• there is no new case law which means HMRC must take a different view

• there are no changes to GAAP which mean HMRC must take a different view

This means that customers can rely on the certainty offered from HMRC for the duration of the clearance, provided they have fully disclosed all relevant facts and continue to operate as set out in the application.

Where a clearance ceases to apply due to case law and statute, customers should contact HMRC to discuss how this affects their clearance. HMRC may be able to modify the existing clearance to accommodate the changes to case law or statute.