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.