Part 7

Disclosure of tax avoidance schemes

Duty of client to notify parties of number
312A
1
This section applies where a person (a “client”) to whom a person who is a promoter in relation to notifiable arrangements or a notifiable proposal is providing (or has provided) services in connection with the notifiable arrangements or notifiable proposal receives prescribed information
under section 312
relating to the reference number
allocated to—
a
the notifiable arrangements or proposed notifiable arrangements, or
b
any arrangements substantially the same as the notifiable arrangements or proposed notifiable arrangements.
1A
This section also applies where a person (a “client”) to whom a person is providing (or has provided) services in connection with arrangements or proposed arrangements receives prescribed information under section 312ZA relating to the reference number allocated to—
a
the arrangements or proposed arrangements, or
b
any arrangements substantially the same as the arrangements or proposed arrangements.
2
The client must, within the prescribed period, provide prescribed information relating to the reference number to any other person—
a
who the client might reasonably be expected to know is or is likely to be a party to the arrangements or proposed arrangements, and
b
who might reasonably be expected to gain a tax advantage in relation to any relevant tax by reason of the arrangements or proposed arrangements.
2A
Where the client—
a
is an employer, and
b
by reason of the arrangements or proposed arrangements, receives or might reasonably be expected to receive an advantage, in relation to any relevant tax, in relation to the employment of one or more of the client's employees,
the client must, within the prescribed period, provide to each of the client's relevant employees prescribed information relating to the reference number.
3
For the purposes of this section—
a
a tax is a “
relevant tax
”, in relation to arrangements or arrangements proposed in a proposal of any description, if it is prescribed in relation to arrangements or proposals of that description by regulations under section 306;
b
“
relevant employee
” means an employee in relation to whose employment the client receives or might reasonably be expected to receive the advantage mentioned in subsection (2A);
c
“
employee
” includes a former employee;
d
a reference to employment includes holding an office (and references to “employee” and “employer” are to be construed accordingly).
4
HMRC
may give notice that, in relation to
arrangements or a proposal
specified in the notice, persons are not under
one or both of the duties under this section
after the date specified in the notice.
5
The duty under subsection (2)
or (2A)
does not apply in prescribed circumstances.
Ss. 312, 312A substituted for s. 312 (1.11.2008 except for the purposes of Stamp Duty Land tax, 1.4.2010 in so far as not already in force) by Finance Act 2008 (c. 9), s. 116(2), Sch. 38 para. 4; S.I. 2008/1935, art. 2(1) (with art. 2(2)); S.I. 2010/409, art. 2
Pt. 7 excluded (17.7.2014) by Finance Act 2014 (c. 26), Sch. 35 para. 13(b)
S. 312A(2A) inserted (26.3.2015) by Finance Act 2015 (c. 11), Sch. 17 para. 5(2)
S. 312A(3) substituted (26.3.2015) by Finance Act 2015 (c. 11), Sch. 17 para. 5(3)
Words in s. 312A(4) substituted (with application in accordance with Sch. 15 para. 20 of the amending Act) by Finance Act 2015 (c. 11), Sch. 17 para. 5(4)
Words in s. 312A(5) inserted (26.3.2015) by Finance Act 2015 (c. 11), Sch. 17 para. 5(5)
S. 312A(1A) inserted (with application in accordance with Sch. 31 paras. 45, 46 of the amending Act) by Finance Act 2021 (c. 26), Sch. 31 paras. 8(3), 44
Words in s. 312A(4) substituted (with application in accordance with Sch. 31 paras. 45, 46 of the amending Act) by Finance Act 2021 (c. 26), Sch. 31 paras. 8(4), 44
Words in s. 312A(1) inserted (with application in accordance with Sch. 31 paras. 45, 46 of the amending Act) by Finance Act 2021 (c. 26), Sch. 31 paras. 8(2)(a), 44
Words in s. 312A(1) substituted (with application in accordance with Sch. 31 paras. 45, 46 of the amending Act) by Finance Act 2021 (c. 26), Sch. 31 paras. 8(2)(b), 44