Commentary

A7.216 Confidentiality where promoter involved

Administration and compliance

A7.216 Confidentiality where promoter involved

A7.216 Confidentiality where promoter involved

The first hallmark prescribes arrangements which a promoter might wish to keep confidential from either HMRC or another promoter1. The scope of this hallmark is extended to inheritance tax with effect from 23 February 20162. Arrangements are prescribed if either:

  1.  

    (a)     any element of the arrangements (including the way in which the arrangements are structured) gives rise to the tax advantage expected to be obtained under the arrangements, and it might reasonably be expected that a promoter would wish the way in which that element of those arrangements secures, or might secure, a tax advantage to be kept confidential from any other promoter at any time following the 'material date', and

  2.  

    (b)     it might reasonably be expected that a promoter would, but for the requirements of the regulations, wish to keep the way in which any element of those arrangements (including the way in which the arrangements are structured) secures, or might secure, that advantage confidential from HMRC at any time following the material date, and a reason for doing so is to facilitate repeated or continued use of the same element, or substantially the same element, in the future

The reference to 'it might reasonably be expected' widens the scope in favour of HMRC, indicating that confidentiality is an issue in most schemes.

Cases under (b) above include, but are not limited to, situations where:

  1.  

    –     the promoter does not provide to the user of the arrangements, or prevents or discourages the user from retaining, any

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