Promoters of tax avoidance schemes
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
  • Intermediaries
  • Threshold conditions
  • Associated and successor entities
  • Promoters of multiple defeated schemes
  • Conduct notices
  • Monitored promoters

FORTHCOMING CHANGE: Finance Bill 2020–21 will contain a number of measures, taking effect from Royal Assent, to strengthen the POTAS rules. These include allowing HMRC to issue stop notices earlier and in a wider range of circumstances, widening the rules to include individuals who control, or significantly influence, promoter entities, and lengthening the maximum period for which a conduct notice can remain in place. For more information, see News Analysis: Draft Finance Bill 2020–21—promoters and enablers of tax avoidance schemes.

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 provide that promoters who meet certain threshold conditions can be served with a conduct notice. If they do not comply with the terms of the notice, they can (subject to the approval of the First-tier Tax Tribunal (FTT)) be issued with a further, monitoring notice. Monitored promoters can be named and shamed by having their names published by HMRC, and must provide HMRC with certain information. Clients and intermediaries of monitored promoters may also have to provide information to HMRC.

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

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