A7.303 Promoters of tax avoidance schemes—conduct notices
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 issue of a conduct notice where the promoter has met any of the threshold conditions (see A7.302) in the previous three years.
For details of the issue of a conduct notice for defeated schemes, see A7.304.
A conduct notice can also be given to a partnership. See A7.313.
An authorised HMRC officer may issue a conduct notice where they become aware, at any time, that a person 'carrying on business as a promoter' (see A7.301A) has met one or more of the threshold conditions within the previous three years (except where a conduct or monitoring notice is already in effect)1.
Note that a conduct notice may also be issued where the person is treated as meeting a threshold condition within the previous three years by virtue of the anti-avoidance rules relating to other entities controlled or significantly influenced by that person (ie the 'relevant body' rules)2. Therefore, a conduct notice may be given both to the person who actually met the threshold condition, and another person who is treated as meeting the threshold condition3.
For details of the threshold