Finance (No. 2) Act 2017

Application to HMRC

20 (1) The liable person in relation to a qualifying loan may make an application to the Commissioners for Her Majesty’s Revenue and Customs for approval of the loan.

(2) An officer of Revenue and Customs may grant such an application if satisfied that, in relation to the loan—

(a) the qualifying payments condition is met (see paragraph 21), or

(b) the commercial terms condition is met (see paragraph 22).

(3) Subject to sub-paragraph (4), an application may be made in 2018.

(4) An application may be made after 2018 if an officer of Revenue and Customs considers it is reasonable in all the circumstances for the liable person to make a late application.

(5) An application for an approval must be made in such form and manner, and contain such information, as may be specified by, or on behalf of, the Commissioners for Her Majesty’s Revenue and Customs.

(6) An officer of Revenue and Customs must notify the applicant of the decision on an application.

(7) Where on an application under this paragraph a loan is approved, the approval may be revoked by an officer of Revenue and Customs if the officer considers that—

(a) information provided in making the application contained an inaccuracy, and

(b) the inaccuracy was deliberate on the applicant’s part.

(8) Where approval is revoked under sub-paragraph (7), approval is to be treated as having been refused at the outset.

(9) In this paragraph “liable person”, in relation to a loan, means the person who is liable for any tax on the value of the relevant step in relation to the loan under paragraph 1.