Advance Thin Capitalisation Agreements
HMRC have issued fresh guidance on Advance Thin Capitalisation Agreements (ATCAs). This is the firstRevenue & Customs brief of 2009 which relates to international taxes. The brief confirms that HMRC have established a new Business International Directorate and moved the Financial Transfer Pricing Team to this unit. The Transfer Pricing Team deals with issues including thin capitalisation, financial services transfer pricing and attribution of profits.
ATCAs have been designed to deal mainly with thin cap forward agreements. The brief includes answers to many questions including the following:
– Can HMRC explain the criteria for qualifying for an ATCA?
– How to submit an application?
– The difference between ATCAs and the old treaty-linked process?
– ATCAs and the Transfer Pricing Team?
– How applications are processed?
– HMRC entitlement to sign off ATCA applications?
– ATCA and anti-arbitrage rules?