Can I ask HMRC about compliance?

Mrs_pbradley936

Hello, can I ask if a would be action would be compliant before I go ahead and do it?

I have looked at the HMRC website and all I can see is where they ask you but nothing about you asking them.

DullGreyGuy

You really need to give more detail but generally no, HMRC aren't really an advisory service and nor are they always correct... HMRC lose at tribunals when people challenge their decisions (clearly not all of them)

Generally you are better asking your accountant then at least you can take issue with them (and their insurance) if their advice proves to be wrong.

[Deleted User]

HMRC do not advise as to whether or not a proposal is ‘compliant’ ?

They also do not provide any tax planning advice but simply process what has been submitted. 

They are available to assist with simple queries.

Why don’t you take the plunge and ask on here? 

Mrs_pbradley936

Ok it is about business roll over for Capital Gains Tax relief. Some business qualify for it and I wanted more info on it. It would be costly if you went ahead only to find a few years later that they did not deem you a suitable business. I took this from the website:

"This relief is given automatically by section 162 Taxation of Chargeable Gains Act 1992, provided the various requirements are met. This may not always be to your advantage."

So by the look of it you can just do it because it is automatic and you have no need to inform them. The second sentence is the bit I was concerned about.

[Deleted User]

I will defer to others as I fear that I may not have sufficient up to date knowledge on this area. Others on this forum most certainly do. I do remember that one had to reinvest the entire proceeds into the new acquisition. Does this help?

https://www.gov.uk/business-asset-rollover-relief

This more comprehensive:

https://www.rossmartin.co.uk/private-client-a-estate-planning/capital-gains-tax/4209-rollover-relief-at-a-glance

allconnected

You can you can indeed ask HMRC if an action you’re intending is in compliance with the tax legislation - they provide a clearance service for it, here. It’s called a non-statutory clearance service to distinguish it from those advance clearances which are set out in specific legislation for specific transactions. Where HMRC give such an advance clearance they are then bound by it if the facts provided were full and accurate.

BUT it’s only an option if certain conditions are met, and the main condition  is that you can show there is genuine uncertainty in how the legislation should apply in your specific case. 

It can’t be used to take the place of a tax advisor to explain how the legislation works in the first place, you’d need to be able to show why it wasn’t clear how it should work. It also can’t be used to help with your tax planning, for example to  check what actions you should take to minimise your tax bill.

in this case, you seem unsure if something is a ‘suitable business’ for the purpose of a specific relief. 

If the problem is that the legislation and HMRC’s guidance on applying that legislation doesn’t make this clear, you could look at asking HMRC via a  clearance application on this point (although there are a number of other conditions to meet.)

if the problem however is that you don’t understand the legislation and guidance and how it would apply to you, then you need professional advice on understanding the rules. 

Hope that helps