Finance Act 2026

Advance tax clearances

266 Clearances

(1) An HMRC officer may, on the application of a qualifying person and if the officer considers it appropriate, give a clearance (an “advance tax clearance”) on how HMRC would decide, in relation to a qualifying investment project, questions relating to—

(a) corporation tax;

(b) value added tax;

(c) stamp duty land tax;

(d) income tax;

(e) the PAYE Regulations;

(f) the construction industry scheme.

(2) An investment project is a “qualifying investment project” if it is expected to result in at least £1 billion of UK expenditure.

(3) The reference here to “UK expenditure” is to expenditure on—

(a) goods, intangible assets, or services (other than the provision of financing), which are used or consumed in, or

(b) immovable property in,

the United Kingdom or the UK sector of the continental shelf.

(4) Any apportionment of expenditure between expenditure that is and is not UK expenditure is to be made on a just and reasonable basis.

(5) A person is a “qualifying person”, in relation to a qualifying investment project, if the person will incur (or is incurring) the UK expenditure for the purpose of the project or if the person—

(a) controls, or will control, such a person,

(b) is a member of a consortium which owns, or will own, such a person,

(c) jointly controls, or will jointly control, a company that is a joint venture and such a person, or

(d) is a partner in a partnership and those partners together control, or will control, such a person.

(6) Where there is more than one qualifying person in relation to an investment project, an application under this section must be made by one only of them with the agreement in writing of the other qualifying persons in relation to the project in existence at the time the application is made.

(7) In this section—

• “company” has the meaning given by section 1121 of CTA 2010;

• “construction industry scheme” means Chapter 3 of Part 3 of FA 2004 and provision made under or in connection with that Chapter;

• “control” has the meaning given by section 1124 of CTA 2010;

• “intangible asset” means an asset which falls to be treated as an intangible asset in accordance with generally accepted accountancy practice (within the meaning given by section 1127 of CTA 2010);

• “partnership” includes an entity established under the law of a country or territory outside the United Kingdom of a similar nature to a partnership;

• “the PAYE Regulations” means the Income Tax (Pay As You Earn) Regulations 2003 (S.I. 2003/2682);

• “the UK sector of the continental shelf” means the areas designated by Order in Council under section 1(7) of the Continental Shelf Act 1964;

• “United Kingdom” includes the territorial sea adjacent to the United Kingdom.

(8) For the purposes of this section—

(a) a person is a member of a consortium if it is a member of a consortium within the meaning of Part 5 of CTA 2010, and

(b) references to a person jointly controlling a company that is a joint venture are to be read in accordance with those provisions of international accounting standards which relate to joint ventures.

267 Binding effect

(1) An advance tax clearance binds HMRC for a period of 5 years, beginning with the day on which the clearance is given as regards—

(a) the investment project, as described in the clearance, and

(b) the qualifying person or persons specified or described in the clearance only.

(2) But HMRC is not bound so far as—

(a) a change in the law, or

(b) a decision of an appeal court that has become final,

alters how HMRC must decide a question.

(3) In this section, “appeal court” means—

(a) the Upper Tribunal;

(b) the Court of Appeal in England and Wales;

(c) the Court of Session;

(d) the Court of Appeal in Northern Ireland;

(e) the Supreme Court.

(4) For the purposes of this section, a decision of an appeal court is “final” if it is—

(a) a ruling of the Supreme Court, or

(b) a ruling of another appeal court in circumstances where—

(i) no appeal may be made against the ruling,

(ii) if an appeal may be made against the ruling with permission (or, in Northern Ireland, leave), the time limit for applications has expired and either no application has been made or permission (or leave) has been refused,

(iii) if such permission (or leave) to appeal against the ruling has been granted or is not required, no appeal has been made within the time limit for appeals, or

(iv) if an appeal was made, it was abandoned or otherwise disposed of before it was determined by the court or tribunal to which it was addressed.

268 Extension

(1) An HMRC officer may, on the application of the nominated person and if the officer considers it appropriate, extend (or further extend) by up to 5 years the period for which an advance tax clearance binds HMRC.

(2) The “nominated person” is—

(a) the qualifying person who made the application for the clearance, or

(b) a qualifying person notified to HMRC by the person who is for the time being the nominated person.

269 Modification

(1) If a decision is taken to change an aspect of an investment project for which an advance tax clearance binds HMRC from how it is described in the clearance, or if anything which is set out in the clearance and is material to it ceases to be accurate—

(a) the nominated person must notify an HMRC officer as soon as reasonably practicable after the decision was taken or the thing ceased to be accurate, and

(b) an HMRC officer may, if the officer considers it appropriate, modify or revoke the clearance.

(2) A modification under subsection (1)—

(a) may—

(i) revoke any part of the clearance;

(ii) otherwise adapt the clearance;

(b) does not alter the period for which a clearance binds HMRC.

(3) An HMRC officer may also modify a clearance so that it specifies a person as regards whom it is binding instead of describing the person.

(4) A modification or revocation under subsection (1) or (3)—

(a) may be made on the application of the nominated person or by an HMRC officer on the officer’s own initiative;

(b) takes effect from such time (which may be any time at or after the time at which the clearance was given) as the HMRC officer may determine.

(5) A nominated person is liable to a penalty of £5,000 if the person fails to comply with the duty under subsection (1)(a).

270 Information

(1) An HMRC officer may require a qualifying person to provide, within such period as the officer may specify, such information as may reasonably be required in connection with an, or an application for an, advance tax clearance.

(2) If a qualifying person fails to comply with a duty imposed under this section in connection with a clearance, an HMRC officer may revoke the clearance or any part of it.

(3) The effect of a revocation under this section is that the clearance, or (as the case may be) the part of the clearance, is treated as never having been given.

(4) A qualifying person is liable to a penalty of £5,000 if the person fails to comply with a duty imposed under this section.

271 Misrepresentation

(1) If a qualifying person has provided an HMRC officer with information which is false or misleading—

(a) in, or in connection with, an application for an advance tax clearance, or

(b) otherwise in connection with such a clearance,

an HMRC officer may revoke the clearance.

(2) The effect of a revocation under subsection (1) is that the clearance is treated as never having been given.

(3) A person is liable to a penalty of £10,000 if the person carelessly or deliberately makes a false or misleading statement to an HMRC officer—

(a) in, or in connection with, an application for or in relation to an advance tax clearance, or

(b) otherwise in connection with such a clearance.

272 Commissioners notice

(1) The Commissioners may set out in a notice published by them—

(a) matters on which an HMRC officer may not give an advance tax clearance;

(b) things that an HMRC officer must, may or may not take into consideration in deciding whether it is appropriate to—

(i) give or modify an advance tax clearance in relation to a qualifying investment project or any particular question relating to such a project, or

(ii) extend the period for which an advance tax clearance binds HMRC;

(c) provision about who an HMRC officer must, may or may not include in an advance tax clearance, if given, as the qualifying person or persons as regards whom the clearance is binding;

(d) steps qualifying persons must take before an HMRC officer may give an advance tax clearance;

(e) how to make, the information to be provided in and the documents to be supplied with applications and notifications under sections 266 to 269.

(2) Unless it is prohibited by a notice under this section, nothing in such a notice prevents an HMRC officer taking into consideration things not mentioned in the notice in deciding whether it is appropriate to—

(a) give, or modify, an advance tax clearance, or

(b) extend the period for which such a clearance binds HMRC.

(3) A notice published by the Commissioners under this section may be amended or withdrawn by a further notice.

273 Powers

(1) The Treasury may by regulations made by statutory instrument—

(a) amend section 266(1)—

(i) to add a tax, or a matter relating to tax, to the matters in relation to which an HMRC officer may give an advance tax clearance, or

(ii) to remove a matter in relation to which an HMRC officer may give such a clearance;

(b) amend section 266(2) to (4) (definition of qualifying investment project).

(2) Regulations under subsection (1)—

(a) may make transitional and saving provision;

(b) may make incidental or consequential provision amending sections 266 to 272 and 274.

(3) A statutory instrument containing regulations under subsection (1) may not be made unless a draft of the instrument has been laid before and approved by a resolution of the House of Commons.

(4) The Treasury may by regulation made by statutory instrument provide that specified enactments relating to penalties imposed in connection with tax (including enactments relating to assessments, review and appeal) are to apply, with or without modifications, in relation to penalties imposed under section 269, 270 or 271.

(5) A statutory instrument containing regulations under subsection (4) is subject to annulment in pursuance of a resolution of the House of Commons.

274 Interpretation

(1) In sections 266 to 273—

• “advance tax clearance” means a clearance under section 266;

• “HMRC” means His Majesty’s Revenue and Customs;

• “HMRC officer” means an officer of Revenue and Customs;

• “nominated person” has the meaning given by section 268(2);

• “qualifying investment project” has the meaning given by section 266(2);

• “qualifying person” has the meaning given by section 266(5).