Disclosure of tax avoidance schemes—IHT
Disclosure of tax avoidance schemes—IHT

The following Private Client guidance note provides comprehensive and up to date legal information covering:

  • Disclosure of tax avoidance schemes—IHT
  • Function of the DOTAS rules
  • Source and scope of DOTAS rules for IHT
  • What creates a requirement to disclose?
  • Who is a promoter?
  • Hallmarks
  • How to make a disclosure
  • Background to the introduction of the 2017 Regulations

This Practice Note describes the rules on the disclosure of tax avoidance schemes (DOTAS) applying to inheritance tax (IHT).

The procedural aspects of the rules, including time limits, how to make a disclosure, scheme reference numbers, penalties and HMRC information powers, are covered in Practice Note: Disclosure of tax avoidance schemes—procedure.

For the rules on disclosing:

  1. avoidance of income tax, corporation tax, capital gains tax (CGT) and National Insurance contributions (NICs), see Practice Note: Disclosure of tax avoidance schemes—income tax, corporation tax, CGT and NICs

  2. stamp duty land tax (SDLT) avoidance, see Practice Note: Disclosure of tax avoidance schemes—SDLT

  3. avoidance of VAT and other indirect taxes, see Practice Note: Disclosure of tax avoidance schemes—VAT and other indirect taxes (DASVOIT)

For separate (but related) rules imposing sanctions on promoters of tax avoidance schemes (POTAS), see Practice Note: Promoters of tax avoidance schemes.

Function of the DOTAS rules

The DOTAS rules make it obligatory to inform HMRC about certain tax avoidance arrangements in order to act as an early warning system, as HMRC would otherwise not find out about tax avoidance schemes until the submission of a tax return many months after implementation of a scheme (and sometimes not even then). For more information, see Function of the DOTAS rules.

Source and scope of DOTAS rules for IHT

The DOTAS rules are found in