Transactions in land: Clearance applications: conditions for application
S770 Income Tax Act 2007, S831 Corporation Tax Act 2010
This guidance applies only if you are an officer authorised to deal with clearance applications (see BIM60395).A person who considers that the transactions in land provisions may apply to a transaction can apply for a clearance.
The following conditions apply:
- the case must be potentially within the provisions (see BIM60310) as clearance is not available if the land is held as trading stock
- the application must be in writing
- the application should be made to Clearance and Counteraction Team (see BIM60395 regarding applications received elsewhere and also BIM60405 where there is a particular difficulty or the clearance is to be refused)
- the applicant must provide full particulars of the disposal and all the background facts that are relevant in deciding whether the transactions in land provisions might apply (see BIM60410)
In dealing with the clearance application you should consider whether any other parties to the transaction have also applied for clearance in order to be consistent (see BIM60435).
For the time limit for responding to the taxpayer, see BIM60410.