Advance Tax Certainty Service

ATCS01500 - Advance Tax Certainty Service: Advance Tax Certainty: Overview of the Advance Tax Certainty Service

The Advance Tax Certainty Service is part of the Government’s commitment to boosting long-term economic growth in the UK and generating certainty for taxes administered by HMRC.

It is a dedicated service for major investment projects, providing a clear position on how HMRC will apply tax legislation to material aspects of the project should it proceed as planned. This service builds upon the existing support offered by HMRC that provides certainty to customers across a broad range of investments.

HMRC want this to be a collaborative and transparent service that delivers tax certainty efficiently and supports confident investment decisions. Ensuring certainty on complex tax issues is a focused process that relies on active engagement from HMRC, the customer, and their advisors. Before applying, customers should ensure they have the resources and availability to work at pace and in partnership with HMRC. HMRC anticipate an approach built on regular dialogue, open sharing of information, and responsiveness to requests. Without this level of engagement, it will be difficult to achieve the policy objectives and provide certainty within the desired timeframes.

A clearance produced as part of the Advance Tax Certainty Service provides HMRC’s view of how the tax rules apply upfront in writing. Our ambition is to provide a 90-day turnaround from formal submission to clearance issuance, but this will depend on the complexity of the case and be subject to discussion and agreement with the applicant. The process will typically follow the below steps:

1. Prior to submitting a formal clearance request, customers will have the opportunity to request an early engagement discussion with HMRC to set out their proposal. This meeting will allow the customer and HMRC to explore feasibility of the clearance prior to committing resources to the process.
2. Customers should submit a clearance request in writing to HMRC, with a clear technical analysis of the position and including any supporting information. HMRC will triage applications to identify eligibility, scope and any critical timing considerations prior to acceptance into the process.
3. Within 21 working days of submission, applicants accepted into the Advance Tax Certainty Service will discuss and agree the deliverable scope and timeline as part of a scoping and planning meeting. This meeting provides an opportunity to speak directly with the Advance Tax Certainty Service Team, subject matter experts, and caseworkers in further detail beyond the initial written submission.
4. HMRC specialists will then consider the relevant facts and technical analysis, seeking clarification or further information from the customer where required. An agreed timeline for completion of the clearance will be put in place after the scoping meeting, with key milestones identified.
5. HMRC aim to issue successful applicants with a clearance within 31 working days of the planning and scoping meeting, but this may vary depending on the complexity or availability of information. This document will set out the scope and duration of clearance, the key facts on which the clearance relies, and key assumptions for continued reliance on the clearance.

Initial clearances are valid for a maximum of 5 years. Where projects are longer than 5 years, customers are able to submit an application to renew the clearance. Clearances can be extended multiple times.

Throughout the duration of the clearance, the customer will be required to provide information to HMRC confirming that they continue to act in accordance with the position set out in the clearance.