TAX CLEARANCES
IHT: BUSINESS PROPERTY RELIEF
PAYMENTS OUT OF SIPPS
TAX CLEARANCES
HM Revenue & Customs (the Revenue) has announced a non statutory clearance service, the purpose being to provide certainty for businesses operating in the UK regarding tax issues. The press release explains that the guidance is for the use of businesses only. Non business taxpayers remain subject to Code of Practice 10 where technical enquiries will be dealt with only if they arise from the last four Finance Acts.
This is an amazingly helpful and welcome development. It contrasts starkly with its earlier stance that under self assessment the responsibility is on the taxpayer to get everything right and the Revenue has no obligation to provide confirmation or any other guidance regarding the accuracy of a particular tax treatment—unless it falls within the extremely small number of cases where a statutory clearance procedure exists.
The Revenue will now provide written confirmation of its view on the application of tax law to a specific transaction or event and aim to do so within 28 days.
