Penalties for enablers of defeated tax avoidance schemes
Penalties for enablers of defeated tax avoidance schemes

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

  • Penalties for enablers of defeated tax avoidance schemes
  • When are the rules in effect?
  • When is a penalty payable?
  • Meaning of key concepts
  • Meaning of ‘defeat’
  • Who is an enabler?
  • An enabler is a designer of arrangements
  • An enabler is a manager of arrangements
  • An enabler is a marketer of arrangements
  • An enabler is an enabling participant
  • More...

FORTHCOMING CHANGE: Finance Bill 2021 contains a number of measures, taking effect from Royal Assent, to take further action against those who promote, market and enable tax avoidance schemes. These include strengthening information powers for HMRC’s existing regime to tackle enablers of tax avoidance schemes and ensure enabler penalties are issued sooner for multi-user schemes. On 23 March 2021, the government published draft guidance to be read alongside the legislation. For more information, see News Analysis: Spring Budget 2021—Private Client analysis — Tackling promoters of tax avoidance and for more information on the draft clauses that were published in July 2020, see News Analysis: Draft Finance Bill 2020–21—Private Client analysis — Promoters and enablers of tax avoidance schemes. See also: Tax—Finance Bill 2021 tracker.

STOP PRESS: On 23 March 2021, the government published a consultation on clamping down on promoters of tax avoidance, which sets out a package of additional measures that could be used to further restrict the activities of promoters and enablers of tax avoidance schemes. For more information, see News Analysis: Tax consultation day—23 March 2021—Private Client analysis — Clamping down on promoters of tax avoidance.

The imposition of penalties on enablers of defeated tax avoidance schemes is designed to prevent and discourage designers, marketers and facilitators of abusive tax avoidance schemes and arrangements.

The introduction of this legislation is part of a broader

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