Disclosure of tax avoidance schemes

FORTHCOMING CHANGES—DRAFT FINANCE BILL 2026: in response to feedback from the consultation that ran from Spring Statement 2025 on 26 March 2025 until 18 June 2025, the government has published draft legislation for inclusion in Finance Bill 2026 (FB 2026) which makes several changes to the rules dealing with those who promote or enable marketed tax avoidance. The draft legislation:

• makes it a criminal offence for the promoter of tax avoidance arrangements to fail to notify the arrangements to HMRC under the Disclosure of Tax Avoidance Schemes (DOTAS) or Disclosure of Tax Avoidance Schemes: VAT and Other Indirect Taxes (DASVOIT) rules

• enables HMRC to issue DOTAS and DASVOIT financial penalties without first having to seek approval from the First-tier Tax Tribunal (FTT)

• enables HMRC to issue ‘universal stop notices’ (USNs) in respect of avoidance arrangements. Stop notices already exist in the Promoters of Tax Avoidance Schemes (POTAS) rules to deter the continued promotion of specified arrangements by sanctioning breaches with naming and shaming, financial penalties and criminal prosecution. However, stop notices apply only to the promoters specified in the notice. USNs would

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