The Promoters of Tax Avoidance Schemes (Prescribed Circumstances under Section 235) (Amendment) Regulations 2021

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend the Promoters of Tax Avoidance Schemes (Prescribed Circumstances under Section 235) Regulations 2015 (S.I. 2015/130) (“the principal Regulations”) which prescribe 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 the Finance Act 2014 (c. 26) (the “2014 Act”).

Regulation 2 amends regulation 3 of the principal Regulations by inserting new paragraph (4). Regulation 3 of the principal Regulations prescribes the circumstances in which a person to some extent responsible for the design of proposed arrangements or arrangements is not to be a promoter despite section 235(2)(a) or (3)(b) of the 2014 Act. New regulation 3(4) provides that this exception does not apply if the person is a member of a promotion structure. This change is made in consequence of the promotion structures provisions introduced into Part 5 of the 2014 Act by Schedule 30 to the Finance Act 2021 (c. 26).

A Tax Information and Impact Note covering this instrument was published on 21 July 2020 alongside the Finance Bill 2021 and is available on GOV.UK at https://www.gov.uk/government/publications/new-proposals-for-tackling-promoters-and-enablers-of-tax-avoidance-schemes. It remains an accurate summary of the impacts that apply to this instrument.