Promoters of tax avoidance schemes

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

  • Promoters of tax avoidance schemes
  • Meaning of promoter
  • Promotion structures
  • Partnerships
  • Intermediaries
  • Stop notices
  • Conduct notices—threshold conditions
  • Associated and successor entities
  • Conduct notices—promoters of multiple defeated schemes
  • Conduct notices—form and effect
  • More...

Promoters of tax avoidance schemes

FORTHCOMING CHANGE relating to Finance Bill 2021–22: Finance Bill 2021–22 (which is expected to be enacted as the Finance Act 2022) will include further measures to counter promoters of tax avoidance schemes. HMRC will be given new powers to freeze the assets of a promoter on whom it is seeking to impose a penalty, publish information about suspected tax avoidance schemes (including the name of the suspected promoter), impose penalties on UK entities that support offshore promoters, and apply to wind up companies that promote tax avoidance. For more information, see News Analysis: Draft Finance Bill 2022—tax avoidance measures.

Finance Act 2014 contains rules relating to promoters of tax avoidance schemes (POTAS). These rules are designed to discourage the marketing of tax avoidance schemes by imposing sanctions on promoters who engage in some defined types of behaviour. The POTAS rules were originally referred to in regulations and HMRC guidance as the rules on 'high-risk promoters'.

The POTAS rules build upon the rules for the disclosure of tax avoidance schemes (DOTAS) and use many of the same definitions. This Practice Note is therefore intended to be read together with Practice Note: Disclosure of tax avoidance schemes—income tax, corporation tax, CGT and NICs. The POTAS rules have a separate function from DOTAS, in that DOTAS is designed to elicit information about schemes (and ties

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