HMRC non statutory clearances

HMRC’s Non Statutory Clearance Service gives a written view of how tax law applies to a specific transaction, but only where there is genuine uncertainty after reading the published guidance, and only where no statutory clearance covers the point. Applicants must follow HMRC’s checklist (Annex A for most taxes, Annex D for VAT), and HMRC normally replies within 28 days. The view binds HMRC only if the facts given were accurate and complete and the transaction goes ahead exactly as described.

What is a non statutory clearance?

It is a written opinion from HMRC on the tax treatment of a transaction or event, given outside any specific clearance procedure in legislation. HMRC’s internal manual (ONSCG1300) says the aim is to give its view where customers have fully considered the legislation and guidance, or contacted the relevant helpline, but cannot find the answer or remain uncertain how the law applies to their transaction.

It differs from a statutory clearance, such as those for company reorganisations. HMRC’s guidance on clearance routes says statutory clearances are mainly concerned with anti avoidance provisions relating to company reorganisations and are handled by its Clearance and Counteraction Team. Before using the non statutory service you are expected to check whether a statutory route applies, because if it does HMRC will not give a view under the non statutory service.

When will HMRC give a view?

HMRC’s guidance says you can ask for advice if all of these apply:

• you have fully read the relevant guidance or contacted the relevant helpline;
• you have not been able to find the information you need; and
• you are still uncertain how the legislation applies to your circumstances.

HMRC states that it does not provide a confirmation service. You must show a genuine uncertainty, and requests for reassurance that your position is correct will not be accepted. HMRC added wording to its guidance on 31 July 2026 to make this clearer.

When will HMRC refuse?

HMRC will explain why if it declines. Its reasons include:

• the application does not contain the information in the relevant checklist;
• HMRC does not see a genuine point of uncertainty;
• the request is for tax planning advice, or to approve tax planning products or arrangements;
• HMRC considers the transaction is for the purpose of avoiding tax;
• HMRC is already checking the tax position for that period;
• the related return is final, unless the application is linked to an offshore disclosure made through the digital disclosure service; or
• a statutory clearance is available.

HMRC also will not give a clearance on a question of fact, such as whether an activity is a business, on the settlements legislation in Chapter 5 of Part 5 of the Income Tax (Trading and Other Income) Act 2005, on the tax consequences of non charitable trust deeds, or on the venture capital schemes in Parts 5 to 6 of the Income Tax Act 2007, which have their own advance assurance process (see our page on the Enterprise Investment Scheme). HMRC’s internal manual adds that it will not clear the effect of draft legislation not yet passed by Parliament (ONSCG2100), and HMRC’s clearance guidance says it gives no clearance, formal or informal, that the general anti abuse rule does not apply.

What information must the application contain?

HMRC publishes five checklists:

Annex	Use for
A	All transactions except those below; head the letter “Clearance service”
B	Advance assurance on Business Investment Relief for non domiciled people taxed on the remittance basis
C	Inheritance Tax Business Property Relief
D	VAT
E	Post transaction clearances connected to an offshore disclosure

The Annex A checklist asks for:

1. the applicant’s name, address and tax reference, the agent’s contact details and authority, and a brief summary of the subject;
2. which taxes are involved, the commercial reasons for the transaction, the facts set out as chronological steps, your own view of the tax consequences, the proposed date and, for VAT requests, the value;
3. the legislation you think applies, why it is open to different interpretations (with reference to HMRC guidance and case law), copies of any legal advice you are happy to share, and details of any related clearances sought; and
4. details of any disclosure under the avoidance scheme disclosure rules, with the scheme reference number, if the transaction involves a tax avoidance scheme.

The applicant must be satisfied the information is accurate and correct to the best of their knowledge and belief. If HMRC asks for more information, it must be received within 30 days of the date on HMRC’s letter or the application may be closed.

How long does HMRC take?

HMRC usually replies within 28 days unless the issues are complicated, in which case it will acknowledge the request and say when to expect a full reply. HMRC’s guidance currently says VAT non statutory clearances are taking around 12 weeks. The clock stops while HMRC waits for information it has requested. Applications are sent by email to the address in the relevant annex.

Applying does not change any deadline. If the transaction has already happened and no reply has arrived by the filing date, the return must still go in on time and can be amended later within the normal time limits, as explained in amending a tax return. Interest and late payment penalties apply as normal.

Can you rely on HMRC’s answer?

HMRC says you can rely on its advice as long as the information supplied was accurate and complete and you carry out the transaction exactly as described. A clearance only applies to the customer it was issued to, even if another customer’s circumstances are the same. The wider public law rules on holding HMRC to its word are covered in our page on relying on HMRC advice.

Illustration only. A company plans to sell a property used partly in its trade and is unsure how a specific relief applies to a mixed use building. Its adviser sets out the facts step by step, the two possible readings of the legislation, HMRC’s manual guidance and the planned completion date. HMRC replies agreeing one reading. Two months later the buyer insists on a different structure, with part of the price deferred. The clearance does not cover the deal as actually done, so the company either applies again or relies on its own analysis.

What if you disagree with HMRC’s view?

There is no general right of appeal against advice, although some VAT rulings are appealable decisions and the letter will say so. If you disagree, you may file in line with your own view, but HMRC’s guidance says you should draw attention to the relevant entry in your return and explain what you have done. If your return contains a careless or deliberate error, penalties and interest may follow. If you think HMRC ignored facts, ask the officer to look again; if you are unhappy with the service, you can complain.

Common mistakes

• Asking for comfort, not clarity. Explain where the genuine uncertainty lies, with references.
• Applying after the return is final. HMRC will not give a view on that period.
• Using the wrong route. Check the statutory clearances first, for example the advance clearance under section 138 of the Taxation of Chargeable Gains Act 1992 for a share for share exchange.
• Leaving out facts. Reliance depends on full and accurate disclosure.
• Changing the deal. The view covers only the transaction as described.
• Missing the 30 day window for any further information HMRC asks for.

If HMRC opens a check into your return, tax investigation insurance pays your accountant’s fees. Solar Protect cover pays up to £100,000 with no excess; it never pays tax, interest or penalties. Read how our cover works or get a quote.

Related Accountapedia entries

• Using HMRC internal manuals
• Complaint or appeal: which route to take
• Is relying on an accountant reasonable care
• Judicial review of HMRC decisions
• HMRC Guidelines for Compliance explained

Sources

• GOV.UK: Non statutory clearance service guidance
• GOV.UK: Non statutory clearance service guidance annexes
• GOV.UK: Manual page ONSCG1300
• GOV.UK: Manual page ONSCG2100
• GOV.UK: Manual page ONSCG2300
• legislation.gov.uk: Act 1992 c. 12, section 138
• GOV.UK: Seeking clearance or approval for a transaction

Reviewed by Christine Anderson, Broker, Solar Protect. Last reviewed 8 October 2026. Part of Accountapedia, the Solar Protect guide to UK tax and accounting. This page is general information, not personalised advice.