Disclosure of tax avoidance schemes—SDLT
Disclosure of tax avoidance schemes—SDLT

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

  • Disclosure of tax avoidance schemes—SDLT
  • Why does this matter?
  • Where can I find the rules?
  • What creates a requirement to disclose?
  • No SDLT hallmarks
  • Meaning of advantage in relation to SDLT
  • Meaning of main benefit
  • The white list
  • Combination steps
  • Steps A to F
  • More...

This Practice Note describes the rules on the disclosure of tax avoidance schemes (DOTAS) applying to stamp duty land tax (SDLT).

The procedural aspects of the DOTAS 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 the avoidance of:

  1. 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. 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.

SDLT applies to land in England and Northern Ireland. The equivalent tax in Scotland is land and buildings transaction tax (LBTT), and in Wales is land transaction tax (LTT). DOTAS does not apply to LBTT or LTT and there are no equivalent disclosure rules in Scotland or Wales. For further details, see the Scotland: LBTT subtopic and the Wales: LTT subtopic.

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

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