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HMRC internal manual

Business Income Manual

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Transactions in land: Clearance applications: Obtaining further information

S771 Income Tax Act 2007, S832 Corporation Tax Act 2010

This guidance applies only if you are an officer authorised to deal with clearance applications (see BIM60395).

The onus is on the applicant to provide all the information that is material to the decision. If you feel that necessary information is missing from the application, you can issue a notice to require any person to provide further details within a specified period (which must be at least 30 days).

Due to the time limit for notifying the taxpayer of the clearance decision, any notice requesting further information must be issued within 30 days of receiving the initial application (see BIM60410).

Once the further information is received, you have 30 days to provide your decision (or to request further clarification). These provisions should not be used as a means to delay the date of the decision unnecessarily.

As discussed in BIM60405, if there is a particular difficulty surrounding the case you should consult CTISA (Technical).

Typical further information required

The legislation envisages that particulars might be needed about:

  • transactions or arrangements with respect to which the person named in the notice is or was acting on behalf of others,
  • transactions or arrangements which should be investigated properly for the purposes of giving clearance, even if those transactions or arrangements are not themselves potentially caught by the legislation,
  • whether the person named in the notice has taken or is taking part (and, if so, what part) in transactions or arrangements of a description specified in the notice.

The list is indicative only and is not meant to limit the information which might be requested via a formal notice.

For guidance on investigating the taxpayer’s motive in taking part in the transaction or arrangements, see BIM60320.

Certain professional advisers may be able to provide only very limited information in response to a notice as their dealings in relation to the transactions or arrangements may be protected by legal professional privilege.

Accepting or refusing the clearance application

For guidance on accepting that a transaction does not fall within the transactions in land provisions, see BIM60420. For guidance on refusing a clearance, see BIM60425.