A7.302 Promoters of tax avoidance schemes—threshold conditions for issue of a conduct notice
HMRC has the power to stop persons promoting certain arrangements that may give rise to a tax advantage. HMRC can also require such persons to maintain certain conduct and monitor them if they fail to do so. This is known as the promoters of tax avoidance scheme (POTAS) regime. For an overview of the regime, see A7.301. For the key definitions, see A7.301A.
This article considers the threshold conditions for that apply for the purposes of issuing a conduct notice to a promoter. Conduct notices are discussed in A7.303, A7.304.
Threshold conditions for issue of a conduct notice
If a person is 'carrying on a business as a promoter' (see A7.301A) and has met one or more of the threshold conditions below in the previous three years, HMRC will consider whether to issue a conduct notice to that person1.
The HMRC officer may ignore cases where one or more threshold conditions are met but this can be considered insignificant. However, where threshold conditions 1–3, 5 or 6 are met, this is always regarded as significant2. For full details of the test of significance and commentary on conduct notices, see A7.303.
Threshold conditions can be amended by Treasury regulations, and new conditions may be added3. Initially, 11 threshold conditions were listed in the legislation4, and a further condition was added with effect from 15 September 20165. For HMRC's view of the threshold conditions, see the HMRC guidance, para 10. At the time
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