UK Proposes New Advance Clearance System for R&D Relief Claims

The UK government is exploring requiring certain companies to seek advance approval of research and development tax relief claims.

His Majesty’s Revenue and Customs plans to develop a new R&D claim assurance system and make it mandatory for certain businesses to promote tax certainty, according to a consultation published Wednesday as part of the government’s midyear fiscal outlook, known as the Spring Statement.

An advance assurance allows companies not to be subject to an inquiry from tax authorities for a certain period of time. HMRC acknowledged while the scheme could provide more certainty and help tackle noncompliance, it may ...