Entity Setup
Entity Setup in the UK: Using Advance Tax Certainty Service for Major Projects
For companies eyeing large scale projects in the UK, the new Advance Tax Certainty Service launching July 2026 offers binding tax clarity—but only if you plan ahead.
By NomadicTax Research Team • 5-8 min read • June 11, 2026
## What is the Advance Tax Certainty Service (ATCS)?
The ATCS is a newly formalised **binding clearance procedure** by HM Revenue & Customs (HMRC) intended for **major investment projects**. It allows businesses to get advance certainty on how UK tax law will apply to their projects, **before committing to large expenditures**. ([gov.uk](https://www.gov.uk/guidance/advance-tax-certainty-service?utm_source=openai))
### Key features:
- Must be at least **£1 billion** of qualifying UK project spend over its lifetime (excluding financing and share acquisitions). ([gov.uk](https://www.gov.uk/guidance/advance-tax-certainty-service?utm_source=openai))
- Applicable to both UK and non-UK entities.
- Taxes in scope: **Corporation Tax, VAT, Stamp Duty Land Tax, Income Tax, PAYE regulations, and Construction Industry Scheme**. Transfer pricing is *excluded*. ([gov.uk](https://www.gov.uk/guidance/advance-tax-certainty-service?utm_source=openai))
- The service will launch **1 July 2026**, with expressions of interest open from **1 June 2026**. Clearances generally take up to **90 days** after submitting a formal request. ([gov.uk](https://www.gov.uk/guidance/advance-tax-certainty-service?utm_source=openai))
## How to use ATCS in your entity setup
1. **Assess eligibility early**: Are you planning infrastructure, energy, real estate or other large‐scale projects with lifetime spend north of £1bn in the UK? If yes, ATCS could give you certainty on tax treatment long before financial risks mount.
2. **Form your structure with clarity**: Corporate entity, funding, asset ownership, contracts—these will all be scrutinized. You’ll need a ‘qualifying person’ as the applicant (and possibly agents). Joint ventures or consortia should nominate one person. {
3. Provide crystal-clear facts**: The clearance will be binding only as long as your disclosed facts, assumptions, and project scope remain material. If laws change, or facts materially shift, the binding effect may end. ([gov.uk](https://www.gov.uk/guidance/advance-tax-certainty-service?utm_source=openai))
4. **Timeline essential**: Submit an early engagement request well ahead of investment decisions. Take into account time for HMRC to respond (approx. 90 days) so that clearances arrive before you start spending.
## Example scenario
Suppose you are a consortium planning to build a large solar farm in the UK:
- Total project cost: £1.2bn over seven years.
- Costs include plant, machinery, land, and software. Excludes share acquisitions.
- You will need a *qualifying person* to apply, clearly setting out links between partners.
- Once you have early engagement and have disclosed every material detail, HMRC might issue a binding clearance clarifying, for example, whether certain R&D tax reliefs apply, or how VAT and stamp duty will work. This can avoid surprise tax charges later.
## Potential benefits and trade-offs
**Benefits**:
- Reduce tax risk and uncertainty around major capital commitments.
- Improve attractiveness to investors by showing stability in tax position.
- Greater visibility of tax costs in cash flow models.
**Trade-offs**:
- Threshold is high—many smaller projects won’t qualify.
- Disclosure obligations are strict; mistakes can invalidate clearance.
- HMRC only grants binding status under stable law. Frequent legislative changes may erode certainty.
## Checklist for companies setting up major project entities in the UK
- Determine whether your project spend qualifies.
- Map out legal entities, ownership, contracts—ensure transparency.
- Choose a qualifying person; appoint agents if needed.
- Prepare for the documentary work: business plans, cost forecasts, timelines.
- Submit expression of interest no later than early June 2026 if you want the clearance in time.
With ATCS going live 1 July 2026, there’s a narrow window for well-advised organisations to lock in tax certainty before themes around cost inflation, legislative drift, or funding risk become unavoidable.