HMRC has updated its disclosure of tax avoidance schemes (DOTAS) guidance, to take account of the Tax Avoidance Schemes (Prescribed Descriptions of Arrangements) (Amendment) Regulations, SI 2016/99, which amended the hallmarks with effect from February 2016. These regulations:
amended the standardised tax product hallmark, widening the role of the hypothetical informed observer when testing whether or not the hallmark applies;
amended the loss schemes hallmark, with the aim of ensuring that promoters cannot argue that the projection of a theoretical profit at some point in the distant future means they are not required to disclose the scheme; and
created a new financial products hallmark, covering arrangements where: the financial product includes terms unlikely to have been entered into were it not for the tax advantage; or contrived or abnormal steps are included without which the tax advantage could not be obtained.
The exemption from the requirement to disclose schemes which are the same, or substantially the same, as schemes that were being marketed before 1 August 2006 was also removed.
The confidentiality hallmark (where there is a promoter involved) and the premium fee hallmark have been extended to include arrangements that might be expected to enable a person to obtain an advantage in relation to IHT.
HMRC has updated its disclosure of tax avoidance schemes (DOTAS) guidance, to take account of the Tax Avoidance Schemes (Prescribed Descriptions of Arrangements) (Amendment) Regulations, SI 2016/99, which amended the hallmarks with effect from February 2016. These regulations:
amended the standardised tax product hallmark, widening the role of the hypothetical informed observer when testing whether or not the hallmark applies;
amended the loss schemes hallmark, with the aim of ensuring that promoters cannot argue that the projection of a theoretical profit at some point in the distant future means they are not required to disclose the scheme; and
created a new financial products hallmark, covering arrangements where: the financial product includes terms unlikely to have been entered into were it not for the tax advantage; or contrived or abnormal steps are included without which the tax advantage could not be obtained.
The exemption from the requirement to disclose schemes which are the same, or substantially the same, as schemes that were being marketed before 1 August 2006 was also removed.
The confidentiality hallmark (where there is a promoter involved) and the premium fee hallmark have been extended to include arrangements that might be expected to enable a person to obtain an advantage in relation to IHT.
