A7.240B DOTAS—notice of potential allocation of reference number—allocation of 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 duties triggered by the issue of a scheme reference number (SRN) following the issue of a notice of potential allocation of reference number (a FA 2004, s 310D notice) by HMRC.
Potential allocation of scheme reference number notice
With effect from 10 June 2021, HMRC can issue a FA 2004, s 310D notice where it suspects that arrangements and 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.
HMRC can issue the notice to any person it suspects of being involved in the supply of notifiable proposals/arrangements (including, but not limited to, the promoter) to require that person to satisfy HMRC that the proposals/arrangements are not notifiable under DOTAS2.
If the person fails to reply within the 30-day time limit or fails to convince HMRC that the proposals/arrangements are not notifiable, HMRC will allocate a scheme reference number (SRN) in respect of those proposals/arrangements.3
If the information received in response to the FA 2004, s 310D