A7.218 Premium fee

A7.218 Premium fee

Arrangements are prescribed if it might reasonably be expected that a promoter (or a person connected with a promoter) of arrangements would, but for the requirement to disclose under the regulations, be able to obtain a premium fee from a person experienced in receiving services of the type being provided1. Thus the rule relates to a deemed premium fee and does not rely on an actual fee being paid (see below).

This hallmark does not apply if:

  1.  

    •     there is no promoter in relation to the scheme, and

  2.  

    •     the tax advantage which may be obtained under the arrangements is intended to be obtained by an individual or a business which is a small or medium-sized enterprise

A 'premium fee' is one chargeable by virtue of any element of the arrangements (including the way in which they are structured) from which the tax advantage expected to be obtained arises and which is:

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