Advance Tax Certainty & UK Infrastructure

Why is it relevant?

Following the 2025 Autumn Budget, the UK government’s new Advance Tax Certainty Service (ATCS) represents one of the most significant tax administration reforms aimed at giving major infrastructure investors increased confidence before committing capital. The hope is that this willreduce tax uncertainty and ultimately accelerate delivery of nationally significant projects.

Major UK infrastructure projects, particularly in energy, transport, utilities and regeneration, have long been hindered by tax ambiguity. Investors frequently face uncertain multi-tax outcomes over long project lifecycles. The ATCS directly addresses these challenges by providing binding certainty for up to five years across multiple taxes, thereby reducing risk premiums, lowering financing costs and improving investment timelines.

Who does it affect?

The ATCS applies to any UK or non-UK investor undertaking a qualifying project of at least £1bn of new investment. This includes energy developers, offshore wind operators, nuclear and grid infrastructure investors, transport and utilities firms, real estate regeneration projects, and large public–private joint ventures. Joint applicants and entities formed specifically for new projects are also eligible.

What do you need to know?

The ATCS covers Corporation Tax, VAT, Stamp Taxes, PAYE and the Construction Industry Scheme. Clearances will be binding on HMRC for five years, provided all facts are fully disclosed. It will not extend to transfer pricing, hypothetical scenarios or valuation disputes. Applications may be submitted prior to project incorporation, with HMRC targeting an average response time of 90 days.

The Orsted West of Duddon Sands case

This recent case highlights the financial impact of uncertainty surrounding capital allowances on pre-construction studies. The Court of Appeal found that such costs may qualify where they inform design and installation, reversing prior tribunal decisions. Under the new ATCS, such disputes could be mitigated by securing binding positions in advance, reducing costly litigation and financing delays.

Expected Impact for Investors and the UK Infrastructure Market

The ATCS is expected to make the UK more competitive globally by reducing tax risk, encouraging long-term capital inflows and accelerating project delivery. For developers, the service reduces uncertainty that previously led to delays or inflated financing costs. For government, it strengthens the UK’s reputation as a stable market for large-scale infrastructure and supports its growth mission under the Autumn Budget 2025.

What should you do next?

Investors should begin preparing internal governance, modelling and documentation to meet ATCS disclosure requirements. Projects expected to exceed the £1bn threshold should start early engagement with advisers to assess eligibility. The service launches in July 2026, with further guidance due shortly. Those planning new energy, transport or regeneration projects should position themselves early to benefit from tax certainty before committing capital.

Contact us

We help clients navigate the tax and accounting implications. If you would like to discuss the implications and changes further, please get in touch with your usual Blick Rothenberg contact, or Artur Vorobyev and Chantal Van Stipriaan using the details below or via this form.