The Tax Avoidance Schemes (Information) (Amendment) Regulations 2021

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend the Tax Avoidance Schemes (Information) Regulations 2012 (“the 2012 Regulations”) to reflect changes made to Part 7 of the Finance Act 2004 (c. 12) (“Part 7”) by the Finance Act 2021 (c. 26).

Part 7 provides for the disclosure to HMRC of information relating to arrangements that enable, or might enable, people to obtain a tax advantage. These arrangements are referred to as “notifiable arrangements” or, before they have been put into effect, a “notifiable proposal”. The individuals responsible for them are known as “promoters” and are obliged to disclose them to HMRC, with related duties falling on their clients. HMRC allocates reference numbers to such disclosed arrangements.

The amendments made by the Finance Act 2021 allow HMRC to allocate a reference number to arrangements, or a proposal, that have not been disclosed where HMRC reasonably suspects them to be notifiable. In such circumstances, the amendments also extend the obligations in Part 7 to all persons that HMRC reasonably suspects to be supplying the arrangements, or proposed arrangements, and their clients. These Regulations make consequential amendments to the 2012 Regulations in order to give effect to those amendments, by including references to suppliers of arrangements and proposals, as well as promoters, and removing references to the arrangements being “notifiable” in circumstances where this is no longer required by Part 7.

A Tax Information and Impact Note covering this instrument was published on 21 July 2020 alongside draft legislation amending Part 7 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.