OT61020 | Transferable tax history - Administration and enquiries - Election - approval

HMRC may approve an election by giving written notice to the seller and purchaser. Where an approval notice has been sent, HMRC will not be able to enquire into the election under TMA70\Sch1A. However, FA19\Sch15\Para74 may apply where an amount is discovered to be incorrect.

If no approval notice is issued, the election will be deemed to have been approved, unless HMRC has sent the parties an enquiry notice within the enquiry window.

As a matter of practice, HMRC will aim to issue approval notices, rather than wait for the enquiry time limit to expire. In straightforward cases, HMRC will aim to send the approval notice within 3 months of the election being received. However, this may not always be possible, particularly if external input from the NSTA or OPRED is required to assess the election. Seller companies may wish to engage with their CCM prior to submitting their election. This will give HMRC additional time to consider the information provided, making it easier for HMRC to provide confirmation promptly when the election is received. If HMRC has concerns about the election, it will aim to raise these concerns well ahead of the enquiry window, to give companies as much clarity as possible on the position.