Disclosure of tax avoidance schemes—income tax, corporation tax, CGT and NICs
Disclosure of tax avoidance schemes—income tax, corporation tax, CGT and NICs

The following Tax practice note provides comprehensive and up to date legal information covering:

  • Disclosure of tax avoidance schemes—income tax, corporation tax, CGT and NICs
  • Why does this matter?
  • Where can I find the rules?
  • Which taxes are affected?
  • A note about NICs
  • What creates a requirement to disclose?
  • Meaning of tax advantage
  • Meaning of main benefit
  • Who is a promoter?
  • Scheme designers
  • More...

This Practice Note describes the rules on the disclosure of tax avoidance schemes (DOTAS) applying to income tax, corporation tax, capital gains tax (CGT) and National Insurance contributions (NICs).

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

For the rules on disclosing the avoidance of:

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

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

  3. inheritance tax (IHT), see Practice Note: Disclosure of tax avoidance schemes—IHT

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

Why does this matter?

The DOTAS rules make it obligatory to inform HMRC about certain tax avoidance arrangements. The rules act as an early warning system for HMRC, which would otherwise not find out about tax avoidance schemes until the submission of tax returns many months after a scheme was first implemented, and sometimes not even then. The DOTAS rules allow HMRC to monitor how widely a scheme is being used, and if necessary to act swiftly to close it down.

Making a disclosure under DOTAS has no bearing on whether the

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