HMRC has published a tax information and impact note which outlines a series of legislative changes to the disclosure of tax avoidance schemes (DOTAS) regime to strengthen HMRC’s ability to further clamp down on the market for National Insurance contributions avoidance.
Draft legislation has also been published for consultation. Although the substantive changes to the disclosure rules will be made by Finance Act 2021, the following draft regulations will make supporting amendments:
Tax Avoidance Schemes (Amendment) Regulations 2021 will amend SI 2012/1836 to reflect changes made to the DOTAS rules in FA 2004 Part 7. The FA 2021 changes will allow HMRC to allocate a reference number to arrangements or proposals which have not been disclosed but where HMRC reasonably suspects them to be notifiable, and will enable HMRC to issue an information notice to a wider range of promoters and intermediaries under the DOTAS rules.
Indirect Taxes (Disclosure of Avoidance Schemes) (Amendment) Regulations 2021 will amend SI 2017/215 to reflect changes made to F(No. 2)A 2017 Sch 17 which sets out the primary rules for the way that indirect tax avoidance is notified to HMRC. The changes to the regulations will mirror those made in relation to the DOTAS regime for direct taxes.
Promoters of Tax Avoidance Schemes (Prescribed Circumstances under Section 235) (Amendment) Regulations 2021 will amend SI 2015/130 which prescribes circumstances in which a person is not to be treated as a promoter in relation to tax avoidance schemes for the purposes of Part 5 of FA 2014. The changes will provide that this exception will not apply if the person in question is a member of a promotion structure, in line with the general changes around promotion structures (for which, see Finance Bill 2021 Sch 29 Part 2 which inserts a new Sch 33A into FA 2014).
All three sets of regulations are expected to take effect from 9 September 2021. The consultation closes on 13 June 2021.
HMRC has published a tax information and impact note which outlines a series of legislative changes to the disclosure of tax avoidance schemes (DOTAS) regime to strengthen HMRC’s ability to further clamp down on the market for National Insurance contributions avoidance.
Draft legislation has also been published for consultation. Although the substantive changes to the disclosure rules will be made by Finance Act 2021, the following draft regulations will make supporting amendments:
Tax Avoidance Schemes (Amendment) Regulations 2021 will amend SI 2012/1836 to reflect changes made to the DOTAS rules in FA 2004 Part 7. The FA 2021 changes will allow HMRC to allocate a reference number to arrangements or proposals which have not been disclosed but where HMRC reasonably suspects them to be notifiable, and will enable HMRC to issue an information notice to a wider range of promoters and intermediaries under the DOTAS rules.
Indirect Taxes (Disclosure of Avoidance Schemes) (Amendment) Regulations 2021 will amend SI 2017/215 to reflect changes made to F(No. 2)A 2017 Sch 17 which sets out the primary rules for the way that indirect tax avoidance is notified to HMRC. The changes to the regulations will mirror those made in relation to the DOTAS regime for direct taxes.
Promoters of Tax Avoidance Schemes (Prescribed Circumstances under Section 235) (Amendment) Regulations 2021 will amend SI 2015/130 which prescribes circumstances in which a person is not to be treated as a promoter in relation to tax avoidance schemes for the purposes of Part 5 of FA 2014. The changes will provide that this exception will not apply if the person in question is a member of a promotion structure, in line with the general changes around promotion structures (for which, see Finance Bill 2021 Sch 29 Part 2 which inserts a new Sch 33A into FA 2014).
All three sets of regulations are expected to take effect from 9 September 2021. The consultation closes on 13 June 2021.
