Income Tax Act 2007 section 701

Application for clearance of transactions

Section 701 sets out the procedure by which a person may apply to HMRC for advance clearance that the anti-avoidance counteraction provisions will not apply to a transaction or series of transactions.

• A person may submit particulars of completed or proposed transactions to HMRC to obtain a clearance notification confirming that no counteraction notice should be served.
• If HMRC consider the information insufficient, they must request further details within 30 days of receiving the particulars or any supplementary information.
• If the requested further information is not provided within 30 days of HMRC's request (or any extended period HMRC allow), HMRC are not obliged to proceed with the clearance application.
• HMRC must issue their clearance notification within 30 days of receiving the original particulars, or within 30 days of receiving all further information requested.