EXPLANATORY NOTE
(This note is not part of the Regulation)
These Regulations make provision corresponding to Part 7 of the Finance Act 2004 and apply regulations under that Part to the extent that they relate to income tax, with necessary modifications, to arrangements or proposals for arrangements which are intended to avoid national insurance contributions. They are made in consequence of the enactment of section 7 of the National Insurance Contributions Act 2006 (c. 10).
Part 1 deals with introductory matters.
Part 2 contains provisions corresponding to Part 7 of the Finance Act 2004, other than section 314, which cannot be replicated because of section 132A(6) of the Social Security Administration Act 1992 (c. 5), inserted by section 7 of the National Insurance Contributions Act 2006.
Part 3 makes provisions corresponding to section 98C of the Taxes Management Act 1970 (penalties for failure to comply with Part 7 of the Finance Act 2004) and applies other provisions of the Taxes Management Act 1970 with modifications so far as they relates to a penalty under that section.
Part 4 modifies the Tax Avoidance Schemes (Prescribed Description of Arrangements) Regulations 2006 (S.I. 2006/1543), the Tax Avoidance Schemes (Information) Regulations 2004 (S.I. 2004/1864)(“the Information Regulations”) and the Tax Avoidance Schemes (Promoters and Prescribed Circumstances) Regulations 2004 (S.I. 2004/1865) in so far as they relate to national insurance contribution avoidance schemes and proposals.
A regulatory impact analysis has been prepared in relation to the provisions of the Social Security Administration Act 1992 dealing with avoidance schemes in relation to national insurance contributions which is available on HM Treasury’s website at hmrc.gov.uk/ria-nicbill05.pdf