Commentary

A7.331 Serial tax avoidance—warning notices

Administration and compliance

A7.331 Serial tax avoidance—warning notices

A7.331 Serial tax avoidance—warning notices

Where a person incurs a 'relevant defeat' in relation to any 'arrangements', HMRC must, within 90 days of the day on which the defeat is incurred, give the person, and those associated with them a warning notice setting out1:

  1.  

    •     when the warning period begins and ends

  2.  

    •     the relevant defeat to which the notice relates, and

  3.  

    •     the implications of the issue of the notice

In the case of a corporate group, the notice must also be given to each group member. A warning notice issued to a company before it becomes a member of a corporate group is treated as issued to each group member. However, a notice will not be issued to an associated person who is a member of the same group of companies2.

Where a tax avoidance scheme is used in connection with a partnership return and is defeated, the defeat is treated as a defeat for each person who was a partner in the partnership during the period covered by the return, each of whom will receive a warning notice3.

The warning period begins on the day after the day

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