ATCS06600 - Governance and legal: modification and revocation of clearances
A customer cannot rely on a clearance if there has been a material change in the facts upon which the clearance was based. In these circumstances, a clearance may be wholly or partially revoked, or modified, by HMRC. Depending on the facts, HMRC will determine from what date the modification or revocation is effective.
The modification or revocation will only apply to the relevant aspect of the clearance. For example, a material change that alters the agreed tax treatment for capital allowances purposes will not result in revocation or modification of say, the VAT aspect of the clearance.
HMRC may revoke a clearance if:
information provided to HMRC in connection with the clearance is found to be false or misleading
an aspect of the project is changed or information provided to HMRC is no longer accurate, such that critical assumptions are no longer met
a request for information by HMRC in relation to the clearance is not complied with
Critical assumptions include exclusions for fraudulent or deliberately dishonest behaviour detailed at ATCS02400.
Clearances will be regularly monitored. In the event annual monitoring or notification of a material change indicates that grounds for revocation exist, this should be given effect in writing in standard format.