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HMRC internal manual

International Exchange of Information Manual

HM Revenue & Customs
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Action 5 rulings: Types of rulings to exchange: Rulings related to a unilateral Advanced Pricing Agreement

A unilateral Advanced Pricing Agreement (APA) is a binding agreement between HMRC and a UK business under TIOPA10/s218; unlike a bilateral APA it does not involve the agreement of another tax authority. The agreement determines the UK tax treatment but does not usually decide the treatment in any other country (INTM422030).

Relevant jurisdiction with which to exchange for APAs will be:

  • The jurisdiction of residence of the ultimate parent company
  • The jurisdiction of residence of the immediate parent company
  • The jurisdiction(s) of residence of all related parties with which the customer enters a transaction covered by the APA or ATCA (IEIM540400) to the extent that those parties are related to the UK customer under the 25% threshold test (See IEIM540400)



Unilateral agreements that fall short of an APA or ATCA may also need to be exchanged under this category (IEIM541250).

Unilateral APAs and ATCAs must also be exchanged automatically under the DAC (IEIM550010).

Unilateral APAs or similar agreements relating to attribution of profits of a permanent establishment also have to be exchanged under both Action 5 and the DAC (IEIM541300).


Bilateral APAs

Bilateral APAs do not need to be exchanged under Action 5.  In general terms, this is because they are made by agreement between the jurisdictions concerned.

A bilateral APA will need to be exchanged under the DAC, and the guidance at IEIM550500 should be followed.