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Introduction to TIS clearances

The transactions in securities (TiS) legislation gives HMRC the power to issue a notice of counteraction in respect of a tax advantage arising from specified scenarios. Broadly it applies where a transaction is carried out otherwise than for bona fide commercial reasons of which the main object is to obtain a tax advantage. There is no obligation to seek clearance from HMRC in relation to TiS and potential applicants may decide not to do so. For more information on the TiS legislation, including a summary of situations where the rules should not apply, see the Transactions in securities and the Phoenix TAAR ― outline of regime guidance note.

A statutory clearance procedure is available under ITA 2007, s 701 (income tax) and CTA 2010, s 748 (corporation tax) and provides confirmation that HMRC will not issue a counteraction for the transaction in question. A clearance application generally takes the form of a letter or email to HMRC setting out the