Measure
Following a previous consultation that ran until 17 June 2025, the government is introducing a new Advance Tax Certainty Service to provide binding certainty on how tax rules will apply to major investment projects in the UK before significant investment takes place. This service aims to support long-term economic growth and stability in the business tax environment. It will cover issues relating to corporation tax, value added tax (VAT), stamp taxes (e.g., stamp duty land tax (SDLT)), Pay As You Earn (PAYE), and the Construction Industry Scheme.
To be eligible, projects must involve new investment in the UK with an in-scope expenditure of at least £1bn over their lifetime, excluding financing costs and expenditure related to the acquisition of shares or ownership interests. Clearances issued will represent a binding decision on the government's view of the law, as applied to fully disclosed facts, unless those facts materially change or there is a change in relevant legislation. Early engagement with HMRC will be a prerequisite for applying.
This service is designed for entities investing in major projects in the UK, including both UK resident and non-UK resident entities. The clearance will apply to the entity incurring the project expenditure, and multiple entities can apply for a single clearance for joint projects.
The Advance Tax Certainty Service will launch in July 2026. Clearances will be issued for an initial period of up to five years. The initial £1 billion financial threshold, the position on fees, and the publication of clearances will be reviewed after the service has been in operation for one year.
This new service is an expected step towards providing certainty for major investment projects in the UK, which should encourage investment and support economic growth. The broad scope of taxes covered is a positive development. While the initial £1bn financial threshold is high, limiting the service to the largest projects, the commitment to review this after one year is welcome. The decision not to charge a fee initially and not to publish clearances addresses certain concerns raised during the consultation, particularly regarding cost and confidentiality. It will be useful to see the technical guidance, alongside legislation, which is noted will be published shortly after the Autumn Budget.