BIM60395 | Transactions in land: Clearance applications: Overview

S770 Income Tax Act 2007, S831 Corporation Tax Act 2010

A person who considers that the transactions in land anti-avoidance provisions may be in point in relation to a transaction can apply for a clearance. The application can be made before or after the disposal is made.

The clearance must be made in writing and should include full information and background facts showing how the gain has or will arise. The onus is on the applicant to provide all the information that is material to the decision. Note that a clearance application cannot be made if the land is held as trading stock. For further details, see BIM60400.

Taxpayers should email clearance applications to:

Paul Boyle, Policy Lead, Transactions in UK Land. Email: [email protected]

Note that this clearance facility only applies to queries relating to the Transactions in Land legislation covering disposals prior to 16 March 2016.

Timelimit

HMRC must give the applicant a decision on the transactions in land clearance within 30 days. Therefore, any clearance applications received should be identified as such and sent to Paul Boyle for consideration as soon as possible.

Once HMRC give a clearance, the transactions in land provisions cannot be invoked in respect of that disposal in relation to that taxpayer.

Clearance later found to be void

If, later, it is discovered that the particulars given were incomplete or inaccurate, the clearance is void and can be challenged using the usual mechanisms. The fact that the applicant was not in a position to provide all the material information at the time of the application does not prevent the clearance being void, if further information which would have affected the decision subsequently comes to light.