Commentary

A7.215 DOTAS hallmarks—introduction

Administration and compliance

A7.215 DOTAS hallmarks—introduction

DOTAS—the hallmarks

A7.215 DOTAS hallmarks—introduction

The disclosure of tax avoidance scheme (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

For an overview of the DOTAS regime, see A7.202.

This article is an overview of the hallmarks and lists which hallmarks must be considered in different situations.

Hallmarks

Arrangements or proposals are notifiable under DOTAS (see A7.205–A7.206) if2:

  1.  

    •     they fall within any of the prescribed 'hallmarks' (see below)

  2.  

    •     they enable, or might be expected to enable, any person to obtain a tax advantage (or national insurance contributions advantage if appropriate), and

  3.  

    •     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)

For the definition of 'tax advantage', 'national insurance advantage' and the taxes to which DOTAS applies, see A7.2033.

Different hallmarks apply depending upon whether there is a promoter involved and under which tax the advantage arises.

Often more than one hallmark may apply to a scheme, and a good understand of the hallmarks is required to adequately make the disclosure. For guidance on who is required to make a disclosure, see A7.230.

The series of questions in the HMRC guidance (paras 4, 5, 10) may be useful in

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