ATCS08100 - Low-risk view on unallowable purpose rules in the loan relationships and derivative contracts regimes: general
If you are eligible to make an application for a clearance under the Advance Tax Certainty Service (see ATCS02000), you may also apply for HMRC to offer a view, where appropriate, that there is a low risk of future compliance intervention (a low-risk view) in relation to the unallowable purpose rules in the loan relationships and/ or derivative contracts regimes. Provided your application for clearance is accepted into the Advance Tax Certainty Service, whether or not HMRC are able to confirm the tax treatment set out by you is correct, HMRC will consider whether or not to offer such a low-risk view.
In addition, HMRC may, in rare and compelling circumstances, and at HMRC’s discretion, agree to consider a request for such a low-risk view even if you are not eligible for the Advance Tax Certainty Service, or, if eligible, even if your application for clearance has not been accepted into it. The applicant must demonstrate that such rare and compelling circumstances exist which make it appropriate for HMRC to consider the request. Each case will be considered on its own merits. In this situation, the application will be dealt with following an appropriate, similar process to the below, to be determined on a case-by-case basis.
The ability to obtain a low-risk view where appropriate, on the basis set out, is in order to support the Advance Tax Certainty Service. This service, as stated in ATCS02100, is part of the government’s commitment to boosting long-term economic growth in the UK and generating certainty for taxes administered by HMRC.
A low-risk view will be offered for a specified period from the date of issue of the view, typically up to five years (unless amended or withdrawn earlier in accordance with the terms of issue).
You will be required to inform us as soon as is reasonably practicable if you become aware of any changes to material facts or if any additional information emerges which may be relevant to the low-risk view. Further requirements for specific monitoring/ disclosure to HMRC may be imposed: if so, they will be set out in the low-risk view letter.
The administrative intention is that there will be an ability to apply for a new low-risk view if an advance tax certainty clearance is being renewed. That new application will require a new supply of information and documents, and will be considered afresh at that point.
The next section sets out what a low-risk view is.