Corporation Tax Act 2010

Advance clearance

1091Advance clearance of distributions

(1)Before a distribution is made, the distributing company may apply under this section to the Commissioners for Her Majesty’s Revenue and Customs (“the Commissioners”).

(2)If, before the distribution is made, the Commissioners notify that company that they are satisfied that it will be an exempt distribution, the distribution is treated as an exempt distribution.

1092Advance clearance of payments

(1)If—

(a)a person intending to make a payment applies under this section to the Commissioners, and

(b)before the payment is made the Commissioners notify the person that they are satisfied that the payment meets the conditions set out in subsection (2),

the payment is not treated as a chargeable payment.

(2)The conditions are that the payment—

(a)will be made for genuine commercial reasons, and

(b)will not form part of a scheme or arrangement the main purpose or one of the main purposes of which is the avoidance of tax.

(3)In subsection (2) “tax” includes stamp duty and stamp duty land tax.

(4)A company which—

(a)becomes connected with another company, or

(b)ceases to be connected with another company,

may make an application under subsection (1) with respect to any payments that may be made by it at any time after becoming or ceasing to be connected with the company in question (whether or not there is any present intention to make any payments).

(5)If the Commissioners give a notification on an application made by virtue of subsection (4), no payment to which the notification relates is to be treated as a chargeable payment merely because the company is or has been connected with the other company.

1093Requirements relating to applications for clearance

(1)Any application under section 1091 or 1092—

(a)must be in writing, and

(b)must contain particulars of the relevant transactions.

(2)The Commissioners may by notice require a person making an application under section 1091 or 1092 to provide further particulars for the purpose of enabling them to make their decision.

(3)The power under subsection (2) must be exercised within 30 days of the receipt of—

(a)the application, or

(b)any further particulars previously required under subsection (2).

(4)If a notice under subsection (2) is not complied with within 30 days, or any longer period that the Commissioners may allow, the Commissioners need not proceed further on the application.

1094Decision of the Commissioners or tribunal

(1)The Commissioners must notify their decision to the person making the application under section 1091 or 1092—

(a)within 30 days of receiving the application, or

(b)if they give a notice under section 1093(2), within 30 days of when the notice is complied with.

(2)Subsection (3) applies if the Commissioners—

(a)(in the case of an application under section 1091) notify the applicant that they are not satisfied that the distribution will be an exempt distribution,

(b)(in the case of an application under section 1092) notify the applicant that they are not satisfied that a payment meets the conditions set out in section 1092(2), or

(c)(in either case) do not notify their decision to the applicant within the time required by subsection (1).

(3)The applicant may require the Commissioners to transmit the application, together with any notice given and further particulars provided under section 1093(2), to the tribunal.

(4)In that event, any notification by the tribunal has effect for the purposes of this section as if it were a decision of the Commissioners.

(5)The right under subsection (3) must be exercised within 30 days of—

(a)the notification of the Commissioners’ decision, or

(b)the time by which the Commissioners are required to notify their decision to the applicant.

(6)If any particulars provided under section 1093 in relation to an application under section 1091 do not fully and accurately disclose all facts and circumstances material for the decision of the Commissioners or tribunal, any resulting notification that the Commissioners are satisfied, or that the tribunal is satisfied, that the distribution will be an exempt distribution is void.

(7)If any particulars provided under section 1093 in relation to an application under section 1092 do not fully and accurately disclose all facts and circumstances material for the decision of the Commissioners or tribunal, any resulting notification that the Commissioners are satisfied, or that the tribunal is satisfied, that the payment in question meets the conditions set out in section 1092(2) is void.