Commentary

D7.5173 Anti-avoidance rule – clearance procedure

Corporate tax
Corporate tax | Commentary

D7.5173 Anti-avoidance rule – clearance procedure

Corporate tax | Commentary

D7.5173 Anti-avoidance rule – clearance procedure

The rules in this division apply for accounting periods beginning before 1 January 2013. For accounting periods beginning on or after 1 January 2013 see Division D7.4.

There is a clearance procedure to allow companies to achieve certainty that any particular transaction will not fall foul of the anti-avoidance provisions1. The clearance procedure is not a joint approach to HMRC; instead each party to the transfer may apply on its own behalf. It is too early to say yet whether a requirement for a party to seek clearance will become a standard clause in scheme documents in the future.

A company may apply for clearance on two grounds: firstly that the obtaining of a life assurance trade profits advantage was not the sole or main

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