BKM504550 | The Code commitments – tax planning: Code approaches

Where a bank has any doubts about how the Code applies to any proposed transaction or arrangement, it can approach HMRC before the transaction is undertaken. Where all the relevant information is provided and the approach is made in good time before the transaction is carried out, HMRC will provide the bank with its views on whether what is proposed would give a tax result that is contrary to the intentions of Parliament. (Further details about how to make a Code approach and what information should be provided are included in BKM507100)

HMRC commits to responding to Code approaches within 28 days. Where there is a commercial imperative to agree the Code position more quickly than this, HMRC will endeavour to meet this requirement. Where the complexity of the issues raised means that more time may be needed, HMRC will indicate to the bank at the outset that a decision is likely to take longer. If HMRC needs to ask for more information, the time taken by the bank to provide that information is excluded from the response time.