Commentary

A7.305 Promoters of tax avoidance schemes—defeat notices

Administration and compliance

A7.305 Promoters of tax avoidance schemes—defeat notices

A7.305 Promoters of tax avoidance schemes—defeat 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 defeat notice, which may be necessary for HMRC to issue a conduct notice for defeated arrangements to a promoter. For details of conduct notices for defeated arrangements, see A7.304.

A defeat notice can also be given to a partnership. See A7.313.

Defeat notices

A defeat notice may be issued to a person 'carrying on a business as a promoter' (see A7.301A) where an authorised HMRC officer becomes aware that one or two 'relevant defeats' (see A7.306) have occurred in relation to that person in the previous three years1.

There are two types of defeat notice2:

  1.  

    •     a single defeat notice—where one 'relevant defeat' has occurred in relation to the person in the previous three years

  2.  

    •     a double

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