Persons required to disclose

A7.210 Promoters

The primary obligation to disclose falls on the 'promoter', but this can be difficult when there is a chain of people involved in devising the scheme, expressing an opinion on it, making changes to it, and marketing the final product. There may also be a problem when an involved person – say someone who has advised on it – does not consider himself nor wishes to be a promoter. There are two categories of promoter, those who design schemes and those who make them available:

  1.  

    (1)     in relation to a notifiable proposal (ie one that has not yet been implemented), any person who in the course of a 'relevant business':

    1.  

      (a)     is responsible for the design of the proposed arrangements to any extent

    2.  

      (b)     (with effect from 1 January 2011) makes a 'firm approach' to another person relating to a scheme with a view to making the scheme available for implementation by that or any other person, or

    3.  

      (c)     makes a notifiable proposal available for implementation by others1

  2.  

    (2)     in relation to notifiable arrangements which have been implemented, any person who in the course of a 'relevant business', is responsible to any extent for the design, organisation or management of those arrangements

Thus, a person who invents a tax scheme is a promoter if he sells the scheme to others or if he permits others to sell the scheme. For a consideration of the above legislation by the first-tier tribunal in the context of

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