HMRC - large business special measures regime

By Tolley

The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • HMRC - large business special measures regime
  • Special measures regime
  • Conditions for entry into special measures
  • Procedure for entering a business into special measures
  • Sanctions
  • Appeals

Finance Bill 2016 will introduce a special measures regime that is intended to tackle a small number of large businesses that are either persistently engaged in aggressive tax planning or refuse to engage with HMRC in an open and collaborative manner. HMRC has introduced special measures to deal with businesses with a history of uncooperative behaviour which causes a significant risk of loss of revenue to the Exchequer. The measure came into effect from the date of Royal Assent to Finance Bill 2016.

HMRC has published guidance on the scope of these special measures and it can be accessed via the following link: Special Measures Guidance . A summary of the announcements made have been provided below.

Special measures regime

Special measures will be applied to businesses with an ongoing history of entering into aggressive tax planning arrangements and / or refusing to engage with HMRC in an open and collaborative manner. Businesses that are likely to be entered into special measures will already be included in one of HMRC’s high risk management programmes. They will already been in regular conversations with their CRM and board to board meetings with HMRC.

Finance Act, 2016, cl 161, Sch 19 

HMRC will advise these types of businesses that they may be at risk of being put into special measures due to their ongoing conduct.

Affected businesses will be required to enter a 12-month improvement period which enables HMRC and the business to work together in order to resolve the ongoing issue(s). At the end of the 12-month period, the business will either have improved its behaviour sufficiently and will not be required to enter into special measures or they will be notified that HMRC has entered them into special measures. HMRC will not apply any sanctions at this stage.

If the business does not improve its behaviour sufficiently and enters into

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