A pilot testing out the taxman's new policy of pre-clearing businesses' complex tax arrangements has been rolled out this month.
The pilot, a cornerstone of plans to improve relations between large business and HM Revenue & Customs, will be tested on retailers dealing with HMRC's large business service and businesses who work with North West & Midlands group of Local Compliance.
The roll-out of the pilots will be welcomed by advisers and large businesses, who see the policy as a way to bring more certainty to the tax system.
The policy, part of the Varney Review of HMRC's relationship with large business, will see HMRC examine the tax consequences of large transactions and provide a view of where the taxman stands to businesses.
The pilot will run for the first few months of 2008. HMRC says it will evaluate the nature of the clearances sought, overall take-up of the extended regime, and the resources HMRC is able to deploy, to ensure the new policy 'meets the objective of providing businesses with certainty and consistency'.
An external research company has been appointed to survey users on there thoughts about the efficacy of clearances.
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