For the latest New Development, see ND.1940.
The disclosure of tax avoidance schemes (DOTAS) rules require certain persons, usually promoters of schemes, but also users in certain circumstances, to provide HMRC with information about schemes falling within certain descriptions, known as 'hallmarks'. The person must tell HMRC how the scheme is intended to work, usually within five days of the date the scheme is made available to any person.1
Notifiable proposals and arrangements
The term 'arrangements' is defined widely so as to include any scheme, transaction or series of transactions2.
Arrangements are notifiable under DOTAS if3:
• they fall within any of the prescribed 'hallmarks' (see A7.215 for income tax, corporation tax, capital gains tax, national insurance contributions and apprenticeship levy, and see A7.203 for inheritance tax and annual tax on enveloped dwellings)
• they enable, or might be expected to enable, any person to obtain a tax advantage (or national insurance contributions advantage if appropriate), and
• the main benefit, or one of the main benefits, that might be expected from the arrangements is the tax advantage (or national insurance contributions advantage if appropriate)
A 'notifiable proposal' is any proposal for arrangements which, if entered into, would be 'notifiable arrangements'4.
For a detailed discussion of notifiable arrangements and proposals, see A7.205–A7.206.
For the meaning of tax advantage and national insurance contributions advantage, see A7.203.
Who is required to make the disclosure?
Depending on the circumstances, the disclosure should be made by one of the following persons5:
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