In the consultation document, published alongside the Spring Statement on 26 March 2025, the government explains how it expects the new process could work and asks for feedback. 

Key points are as follows: 

• Eligibility: The process will initially be available to corporate entities directly undertaking major investment projects that are or will be subject to UK corporation tax (including those without an existing UK presence at the time of application).
• Threshold: There will be “a clear quantitative threshold”, set in terms of the investment in fixed and intangible assets. The government anticipates initially setting a threshold that would entail dozens, rather than hundreds, of projects being serviced each year. 
• Exceptions: Exclusions and safeguards will apply. The government is interested in exploring how projects that do not meet the threshold but are “of national or strategic importance or are highly impactful on a relative basis within their sector” may be brought within scope.
• Taxes: Corporation tax will be the core tax on which clearances may be sought, but the government is open to considering other taxes, such as VAT, stamp taxes and employment taxes, with the caveat that this would not seek to duplicate existing forward-looking processes such as partial exemption special methods for VAT and Customs rulings. 
• Scope: Tax certainty would be available on specific issues, rather than general tax matters or hypothetical questions. HMRC will not be expected to give certainty on every tax implication within a project. The service will not require demonstration of genuine uncertainty, unlike the non-statutory clearance service.
• Reliance: The decision would be binding on HMRC where all facts are “fully disclosed and not misrepresented”. It will be based on “assumptions” to reflect that the project is not yet complete.   
• Cost: The government is considering whether to provide the service for free or for a charge. 
• Process: It is anticipated that clearance applications would be preceded by an ‘early engagement discussion’ for taxpayers who are unsure whether an advance clearance is the most appropriate route for increased certainty. The government expects that applications can be made where board approval for the investment has been given or “the clearance is the deciding factor in a go/no go investment decision”.
• Review: HMRC’s decision would not be appealable through processes such as tribunals. It is expected that HMRC will operate an internal process for reconsideration.
• Publication: The government is considering the publication of “summarised and anonymised clearances” as this “could drive further tax certainty beyond the clearance process and build trust in the tax system”.
• Start date: The government intends to implement the new process in 2026. Any necessary legislation will be included in a Finance Bill. 

The government says that work on the new process is in addition to other work on improving tax certainty. This includes greater certainty on the treatment of cost contribution arrangements (CCAs).  

The consultation document confirms that HMRC will offer clearance on the treatment of CCAs through advance pricing agreements (APAs) using existing legislation. 

The consultation closes on 17 June 2025. If you have any feedback that you would like ICAEW to consider for inclusion in its response, please contact Richard Jones by 2 May 2025. 

Further information 

• Government publishes its plans for corporation tax | ICAEW