A7.240A DOTAS—notice of potential allocation of scheme reference number
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 considers the action that HMRC can take where is suspects that arrangements or proposals are notifiable under DOTAS but have not been disclosed to HMRC. For the meaning of notifiable arrangements and notifiable proposals, see A7.205–A7.206.
Potential allocation of scheme reference number—overview
With effect from 10 June 2021, HMRC has greater powers to deal with a situation where it suspects that arrangements and proposals are notifiable under DOTAS but have not been disclosed to HMRC2. Prior to this date, HMRC's only option in this situation would be to apply to the tribunal for an order that the arrangements/proposals were notifiable or should be treated as notifiable3. See A7.242–A7.243.
Although the option of applying to the tribunal remains, HMRC can instead issue a notice to any person it suspects of being involved in the supply of notifiable proposals/arrangements to require that person to satisfy HMRC that the proposals/arrangements are not notifiable under DOTAS. This is called a 'notice of potential allocation of reference number' (also called a FA 2004, s 310D notice) and