ETMD: anti avoidance provisions: clearance procedure
Companies which are a transferor or a transferee in a transaction to which TCGA 1992 sections 140A, C, E or F might apply can make an application for advance clearance that the transactions which they propose to undertake satisfy both of the tests imposed by the relevant anti avoidance provisions.
The statutory rules for clearance are within TCGA 1992 section 138. The guidance at CG52631 explains those rules as they relate to section 137 but they equally apply to transactions within section 140A - G see sections 140B(3), 140D(3) and 140E(8).
You should note the following:
The Clearance & Counteraction Team, Anti-Avoidance Group deals with all advance applications for clearance and the guidance at CG52631 explains the procedure if an advance application for clearance is not made directly to them.
If on receipt of a return or self assessment it is apparent that a transaction within any of sections 140A - G took place but no clearance application was made, or one was refused, then the file together with a report should be sent to the Capital Gains Technical Group. You should also make a report if one is asked for by the Clearance and Counteraction Team in the instructions that accompanied the file copy of any clearance letter issued.
If clearance was given, you should ensure that there are no discrepancies between what actually took place and those described in the clearance application. If there are no discrepancies you should then determine whether the statutory conditions for the relevant statute to apply have been met.
If there are discrepancies the company should be asked to explain why they arose and, if necessary, a report should be made to Capital Gains Technical Group at