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Advance tax certainty for major projects consultation

Deadline to complete - Friday, 16 May

1.Entities eligible The government proposes that corporate entities directly undertaking major investment projects, including those without a current UK presence but planning one, should be eligible for advance tax certainty if they are or will be subject to Corporation Tax. While this may exclude some structures or create ambiguity for complex arrangements, the government invites examples to help refine the scope. Indirect investors are also expected to benefit from certainty gained at the corporate level.

What is the impact of limiting eligibility for advance tax certainty to corporate entities that are or will be subject to Corporation Tax and are directly undertaking major investment projects, and does this exclude other structures that could significantly benefit from being included? Additionally, how might providing advance tax certainty deliver wider material benefits beyond the entity receiving the clearance?
2.Threshold - the government plans to set a clear, quantitative threshold—based on authorised project spend on fixed and intangible assets—to identify the most significant investment projects eligible for advance tax certainty, with flexibility to review and refine this over time. To ensure fairness and deliverability, it seeks views on defining intangible assets, handling phased projects, and preventing project bundling or misuse, while also considering how to include strategically important projects that may not meet the financial threshold alone.

What is the most effective and objective way to quantify fixed and intangible investment to assess whether a project meets the threshold, and is authorised project spend an appropriate metric? Additionally, would the decision to seek advance tax certainty be driven more by the level of expenditure or by the tax at stake and uncertainty in treatment, and are there supplementary, measurable criteria that could bring smaller but nationally or strategically important projects into scope?
3.Scope Feedback from stakeholders to date has been that Corporation Tax would benefit most from advance certainty, but the government is open to exploring the case for expanding the process to other areas such as VAT, Stamps Taxes and Employer Duties with the caveat that this would not seek to duplicate existing forward-looking processes such as Partial Exemption Special Methods (PESM) for VAT and Customs rulings.

In which areas of UK tax legislation would advance tax certainty have the greatest impact on investment decisions, and can you provide examples where a lack of certainty negatively affected investment? Additionally, are there areas where certainty would be valuable but are not currently covered by the non-statutory clearance process, and what are the potential benefits and barriers to including them?
4.Form of clearance - The government proposes a clearance process offering advance tax certainty on specific issues for major projects, with binding decisions based on disclosed facts and assumptions, but subject to change if those assumptions or the law change. Views are sought on whether clearances should be mutually binding, and how protections should be applied if they are not. The process will be managed centrally for consistency and transparency.

Who should be bound by an advance certainty clearance, to what extent, and in what form, and under what circumstances should taxpayers be able to continue relying on a clearance?
5.Early engagement discussion - The government proposes optional early engagement meetings with HMRC to help taxpayers assess eligibility, determine the feasibility of their clearance request, and decide the appropriate timing for a formal application, without committing unnecessary resources.

Do you consider that an early engagement facility would be helpful and why?
6.Clearance submission - Advance certainty clearance applications must be made in writing, with submissions possible before major project investments, finalising accounts, or submitting CT returns, depending on when sufficient reliable facts are available. Applications should confirm eligibility, include technical analysis and supporting information, and will have a designated point of contact, with ineligible applications notified in writing, but not appealable through tribunals, though HMRC will consider internal reconsideration processes.

How would this process align with typical commercial decision-making timescales, and what facilities would be helpful for unsuccessful clearance applications, such as allowing for reconsideration by HMRC upon request?
7.Scoping meeting - HMRC proposes holding a scoping meeting for valid applications within 30 days of receipt, or sooner if the clearance is critical for investment decisions, to discuss timelines, required information, priorities, and potential scope refinements, ensuring both the applicant's and HMRC's needs are met.

Do you consider a scoping meeting to obtain clarity on scope of clearance, timing and inputs to be useful? What would a scoping conversation need to include?
8.Clearance considerations - Clearances will be reviewed by a team of technical specialists and policy leads, with input from a customer's existing HMRC contacts, and may involve further discussions for final information; if the clearance process isn't completed before filing, responsibility may shift to the compliance team for continued evaluation based on prior analysis.

Are there process elements you would consider helpful during the clearance consideration phase?
9.Publication - The government proposes publishing summarised and anonymised clearances to extend tax certainty beyond applicants, improve trust in the tax system, and clarify HMRC’s position, while ensuring confidentiality and avoiding administrative burdens or deterring applications. Many jurisdictions already publish edited advance tax rulings, with businesses reviewing summaries before publication to protect sensitive information.

What do you consider the advantages and disadvantages of publishing summarised and anonymised clearances to be? Has publication by other clearance jurisdictions aided tax certainty as a result?
10.Factors affecting continued reliance on a clearance - HMRC aims to ensure that small changes in law, facts, or ownership don't fully invalidate clearances, and will work with customers to confirm any impact, potentially through annual compliance returns or discussions with compliance contacts.

What would you wish to see in terms of engagement for clearances where impacted post issuance by legislation, ownership, case law or key facts and assumption changes?
11.Clearance renewals - For major projects with a lifespan beyond the proposed five-year maximum clearance, taxpayers may apply for a renewal, confirming unchanged facts and assumptions, with safeguards to prevent scope expansion beyond the original project.

What should a renewals process look like, and is 5 years an acceptable trigger point?