The following Owner-Managed Businesses guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
The DOTAS rules do not include a definition of an avoidance scheme, instead they focus on whether a scheme is ‘notifiable’. A scheme can be something that it is described as such, but the rules apply equally to any arrangements. This guidance note uses the term ‘scheme’ to cover both.
A ‘scheme’ is notifiable if it is expected, or can reasonably be expected:
to deliver an advantage in relation to any tax
that advantage is the main benefit or one of the main benefits of the scheme, and
that it carries certain ‘hallmarks’ or contains specified features. Those hallmarks or features vary according to the type of tax concerned
FA 2004, s 306; SI 2006/1543
The taxes covered by the DOTAS regime are:
capital gains tax (CGT)
national insurance contributions (NIC)
inheritance tax (IHT)
stamp duty land tax (SDLT)
annual tax on enveloped dwellings (ATED)
FA 2004, s 318
Full HMRC guidance on DOTAS (running to 162 pages) is available on the GOV.UK website.
A separate disclosure regime applies to value-added tax (VAT). See the Anti-avoidance ― introduction guidance note in the VAT module.
Note that the DOTAS regime does not apply to the devolved Scottish taxes: land and buildings transaction tax (LBTT) or Scottish landfill tax (SLFT). There is no disclosure regime in respect of these taxes.
This guidance note considers whether a scheme is notifiable in relation to the various taxes. For a summary of the DOTAS regime, see the Disclosure of tax avoidance schemes (DOTAS) ― overview guidance note. For details of the action which end users of the scheme must take, see the DOTAS ― what end users must do guidance note.
For these taxes, there are currently eight hallmarks (although the leasing hallmark does not apply to NIC-only schemes). If one or more of these is present in a scheme where the delivery of a tax or NIC advantage is a main benefit, that scheme is
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
The substantial shareholding exemption (SSE) provides a complete exemption from the liability to corporation tax on the gains generated from qualifying disposals of shares and interests in shares by qualifying companies. Conversely, if losses are generated by the disposal and the SSE conditions are
This note offers guidance in respect of the administration of company tax returns. If a company or organisation is subject to corporation tax they will have to complete and file a company tax return for each accounting period. A company or organisation must, in the main, file a return even if they
Normal due dateIndividuals are required to pay any outstanding income tax and Class 4 National Insurance, Class 2 National Insurance, and capital gains tax due for the tax year by 31 January following the end of the tax year (ie 31 January 2021 for the 2019/20 tax year). From 6 April 2020, UK
What is structures and buildings allowance (SBA)?From 29 October 2018, expenditure on constructing a non-residential building or structure, or in certain cases, expenditure on acquiring such a building or structure, qualifies for an SBA. The following note has been updated for the changes announced
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.