Commentary

A7.205 Notifiable arrangements

Administration and compliance

A7.205 Notifiable arrangements

Information to be disclosed

A7.205 Notifiable arrangements

The concept of 'notifiable arrangements' is at the heart of the DOTAS rules because it is only such arrangements that can give rise to a 'notifiable proposal' (see A7.206) and impose the duty to make a disclosure to HMRC. The term 'arrangements' is defined widely so as to include any scheme, transaction or series of transactions1. If any of the hallmarks are satisfied, therefore, a sensible assumption should be that disclosure is required, subject to any exclusions.

'Notifiable arrangements' have three basic attributes as follows:

  1.  

    (a)     they must fall within any description (the 'hallmarks') variously prescribed by separate regulations, depending on the tax in question

  2.  

    (b)     they enable, or might be expected to enable, any person to obtain an advantage in relation to income tax, corporation tax, capital gains tax, certain inheritance tax arrangements involving transfers of property into trust (with effect from 6 April 2011) or, with effect from 1 April 2018, involving certain gifts with reservation of benefit or reduction in the value of a person's estate (see below)2, or the annual tax on enveloped dwellings (with effect from 4 November 2013)3 (see A7.203), and

  3.  

    (c)     the main benefit or one of the main benefits that might be expected to arise from the arrangements is the obtaining of that advantage4

The regulations5 referred to in (a) above specify the following 'hallmarks':

  1.  

    •     wishing to keep the arrangements confidential from a competitor

  2.  

    •     wishing to keep the arrangements confidential from HMRC

  3.  

    •     arrangements

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