Finance (No. 2) Act 2017

Promoters of tax avoidance schemes

54 (1) Schedule 34A (defeated arrangements) is amended as follows.

(2) In paragraph 2(4) after “”schemes)” insert “or paragraph 22 of Schedule 17 to FA 2017 (disclosure of avoidance schemes: VAT and other indirect taxes).

(3) In paragraph 14—

(a) in sub-paragraph (1)(a) after “VAT” insert “or other indirect tax”, and

(b) in sub-paragraphs (1)(a) and (b), (2) and (3) omit “taxable”.

(4) After paragraph 26 insert—

““Disclosable VAT or other indirect tax arrangements”

26A (1) For the purposes of this Schedule arrangements are “disclosable VAT or other indirect tax arrangements” at any time if at that time—

(a) the arrangements are disclosable Schedule 11A arrangements, or

(b) sub-paragraph (2) applies.

(2) This sub-paragraph applies if a person—

(a) has provided information in relation to the arrangements under paragraph 12(1), 17(2) or 18(2) of Schedule 17 to FA 2017, or

(b) has failed to comply with any of those provisions in relation to the arrangements.

(3) But for the purposes of this Schedule arrangements in respect of which HMRC have given notice under paragraph 23(6) of that Schedule (notice that promoters not under duty to notify client of reference number) are not to be regarded as disclosable VAT or other indirect tax arrangements.

(4) For the purposes of sub-paragraph (2) a person who would be required to provide information under paragraph 12(1) of that Schedule—

(a) but for the fact that the arrangements implement a proposal in respect of which notice has been given under paragraph 11(1) of that Schedule, or

(b) but for paragraph 13, 14 or 15 of that Schedule,

is treated as providing the information at the end of the period referred to in paragraph 12(1).”

(5) In the heading before paragraph 27, after ““disclosable” insert “Schedule 11A”.

(6) In paragraph 27—

(a) for “this Schedule” substitute “paragraph 26A”, and

(b) after ““disclosable” insert “Schedule 11A”.

(7) In the heading before paragraph 28 for “and 27” substitute “to 27”.

(8) In paragraph 28(1) after “26(1)(a)” insert “26A(2)(a)