Commentary

A7.218 DOTAS hallmarks—premium fee

Administration and compliance

A7.218 DOTAS hallmarks—premium fee

A7.218 DOTAS hallmarks—premium fee

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 discusses the premium fee hallmark. For an overview of the hallmarks and lists that show which hallmarks must be considered in different situations, see A7.215.

Application of this hallmark

This DOTAS hallmark prescribes 'arrangements' where a premium fee could be obtained in exchange for provision of the arrangements2. For the definition of 'arrangements', see A7.205.

This hallmark applies where the arrangements provide a tax advantage relating to income tax, corporation tax, capital gains tax, national insurance contributions, the apprenticeship levy or inheritance tax irrespective of whether or not promoter is involved3. See A7.215.

This hallmark must be considered by the following persons when deciding whether the arrangements are notifiable for the purposes of a disclosure under DOTAS:

  1.  

    •     the promoter of the arrangements (see A7.210), or

  2.  

    •     the user of the arrangements,

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