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HMRC internal manual

International Manual

Transfer pricing: methodologies: Advance Pricing Agreements: revising and renewing


  1. In some cases the APA may provide for modification of its terms in specific circumstances; for example, a particular agreement may provide that where there has been a change which makes the agreed methodology difficult to apply, but which does not go as far as to invalidate a critical assumption, the agreement may be modified with the consent of the parties to resolve that difficulty. In such cases the APA may be revised in accordance with Section 225, TIOPA 2010 after consultations between the business and HMRC and, in the case of bilateral agreements, the Competent Authority of the other country involved.
  2. Where the facts and circumstances have not changed the business may request renewal of an APA for an additional fixed period ideally not later than six months before the expiry of its current term, but HMRC will not rule as out of time requests made before the end of the first chargeable period affected by the renewal or, in the case of bilateral cases, later, if the other Administration is prepared to allow further time. HMRC will consider interest in a renewal in light of current international thinking and HMRC’s practice at the time. It will also consider whether the previous APA methodology and its monitoring requirements for all parties have functioned as well as intended. There is no expectation that a renewal will always be worthwhile and any renewal process is also dependent on the view and approach of the relevant treaty partner(s).