Policy paper

Statement of Practice 2 (2012)

Published 30 January 2012

© Crown copyright 2012

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Statement of Practice 2 (2012) ##Abstract

HM Revenue and Customs (HMRC) has published Statement of Practice 2 (2012) which explains the support that HMRC will give to non resident businesses who are thinking about investing in the UK. It replaces Statement of Practice 2 (2007) on inward investment and corporate reconstruction, and details what types of investment HMRC will view as ‘significant’ as well as giving certainty via written confirmation of how they will apply UK tax law to specific transactions.

Introduction

This Statement of Practice replaces an earlier Statement on inward investment and corporate reconstruction, published in 2007. It explains the support that HMRC will give to non resident businesses who are thinking about investing in the UK.

Providing clarity about UK Tax

1. HMRC can help businesses based outside the UK by providing certainty about the tax implications of a significant investment in the UK. Please note that we will not comment on the structure of the investment.

2. Inward Investment Support (IIS) is a service offered by HMRC to businesses which are not resident in the UK and have no existing relationship with HMRC. IIS aims to give clarity and certainty by providing written confirmation of how HMRC will apply UK tax law to specific transactions.

3. HMRC will view an investment as ‘significant’ if the amount to be invested is intended to be £30 million or more, but it will also assist on smaller investments which it agrees may be of importance to the national or regional economy.

How IIS can help

4. IIS will provide written confirmation of how HMRC will apply UK tax law to specific transactions or events. Businesses should supply as much information as possible about the proposed investment, including:

  • the name, address and country of residence of the businesses
  • the nature and size of the projected transaction(s), the tax(es) involved and the chronology or proposed chronology of the transaction(s)
  • the commercial background - describing the reasons why the business is considering the transaction
  • any specific legal points which are known or believed to arise - the points at issue should be outlined - if written legal advice is available, supplying a copy of it may enable HMRC to respond sooner
  • the reasons why the investment is believed to be of importance to the national or regional economy

5. Any information provided to HMRC will be treated in the strictest confidence. HMRC officers are bound by a statutory duty of confidentiality.

6. IIS will respond within 28 days, drawing on HMRC’s network of technical tax specialists. If a full response cannot be provided within that time, an explanation will be supplied. There is more detail about HMRC’s service standards in the guidance document ‘When you can rely on information or advice provided by HM Revenue and Customs’.

Contacting IIS

The HMRC contact point is:

Colin Miller
Inward Investment Support
HM Revenue and Customs
CTIAA Business International
100 Parliament Street
London
SW1A 2BQ

Telephone: 020 7147 2634

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