Legislation – Finance Act 2026

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.