How long do tax clearances latest

Share for share exchange and loan notes etc.

Didn't find your answer?

I have recently received approval from HMRC for a share reorg which includes loan notes etc following a tax clearance application. The expected date for the transaction was this month but it is now expected to be delayed by six months, and the consideration will also be different. Should I send in an amended clearance letter? Are there any potential issues here?

The transaction is basically a management buy out.

Replies (3)

Please login or register to join the discussion.

avatar
By Dib
20th Aug 2018 16:19

Unless the final transaction is different from that for which clearance has been granted I wouldn't reapply. For example, just changing the quantum of the consideration shouldn't matter. If the form of the consideration has changed then it would matter.

Thanks (1)
By Tim Vane
20th Aug 2018 22:54

I would reapply. Where’s the harm, and it CYA.

Thanks (1)
Replying to Tim Vane:
By Ruddles
21st Aug 2018 09:22

Agreed - if the facts are different in any way at all the original clearance cannot be relied upon.

Thanks (1)