HMRC has substantially updated its promoters of tax avoidance schemes (POTAS) guidance to reflect changes introduced by Finance Act 2021, including new guidance in section 4 on stop notices and in section 5 on conduct notices.
Other new sections added to the guidance include:
Conduct notices: FA 2021 extended the duration of a conduct notice to a maximum of five years.
Transferees and monitoring notices: before the FA 2021 changes, where a conduct notice or monitoring notice was given to an entity, it was not possible to transfer that notice to another entity. The FA 2021 changes allow HMRC to issue such notices to ‘transferees’.
Monitoring notices: HMRC can apply to the tribunal for approval to give a person a monitoring notice where they are or were subject to a conduct notice. FA 2021 introduced a 12-month time limit from the date of the determination to make the application, and the ability to apply for a monitoring notice after the conduct notice ceased.
Promotion structures (FA 2014 Sch 33A): the definition of ‘promoter’ was widened by FA 2021 to prevent promoters from abusing business structures to avoid their obligations under the POTAS regime by including any person who is a ‘member of a promotion structure’, whether or not the person carries on a business.
HMRC has substantially updated its promoters of tax avoidance schemes (POTAS) guidance to reflect changes introduced by Finance Act 2021, including new guidance in section 4 on stop notices and in section 5 on conduct notices.
Other new sections added to the guidance include:
Conduct notices: FA 2021 extended the duration of a conduct notice to a maximum of five years.
Transferees and monitoring notices: before the FA 2021 changes, where a conduct notice or monitoring notice was given to an entity, it was not possible to transfer that notice to another entity. The FA 2021 changes allow HMRC to issue such notices to ‘transferees’.
Monitoring notices: HMRC can apply to the tribunal for approval to give a person a monitoring notice where they are or were subject to a conduct notice. FA 2021 introduced a 12-month time limit from the date of the determination to make the application, and the ability to apply for a monitoring notice after the conduct notice ceased.
Promotion structures (FA 2014 Sch 33A): the definition of ‘promoter’ was widened by FA 2021 to prevent promoters from abusing business structures to avoid their obligations under the POTAS regime by including any person who is a ‘member of a promotion structure’, whether or not the person carries on a business.
