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HMRC internal manual

Business Income Manual

HM Revenue & Customs
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Transactions in land: Clearance applications: Acceptance

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 clearance should be given if:

  • you are the appropriate officer (see BIM60400),
  • you are given all the necessary background information (see BIM60410),
  • you are satisfied that the transactions in land provisions do not apply (see BIM60310).

For a form of words that can be used to notify the taxpayer that clearance has been given, see BIM60430.

For guidance on refusing the application, see BIM60425.

Scope of the clearance

Where a clearance is accepted it is only appropriate to the particular applicant.

For example, a clearance will have no effect in relation to:

  • another party to the transaction (see BIM60435),
  • taxing the person who provided the value or opportunity so that the applicant can realise the gain (see BIM60328).

Consequences of giving clearance

Once you give clearance that the transactions in land provisions do not apply, HMRC cannot invoke these rules in respect of that disposal in relation to that taxpayer.

If, later, it is discovered that the particulars given were incomplete or inaccurate, the clearance is void and would not prevent an enquiry being opened or a discovery assessment being made (as appropriate). The fact that the applicant was not in a position to provide all the material information at the time of the application does not prevent the clearance being void, if further information which would have affected the decision subsequently comes to light.