These Regulations amend the Indirect Taxes (Disclosure of Avoidance Schemes) Regulations 2017 (“the 2017 Regulations”) to reflect changes made to Schedule 17 to the Finance (No. 2) Act 2017 (“Schedule 17”) by the Finance Act 2021 (c. 26).

Schedule 17 provides for the disclosure to HMRC of information relating to arrangements that enable, or might enable, people to obtain a tax advantage in relation to VAT or another indirect tax. 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 Schedule 17 to all persons that HMRC reasonably suspects to be supplying the arrangements, or proposal, and their clients. Where a reference number has been allocated on this basis, there is no requirement for the arrangements or proposals to be “notifiable”. These Regulations make consequential amendments to the 2017 Regulations in order to give effect to those amendments, by including references to suppliers of arrangements and proposed arrangements, as well as promoters, and removing references to the arrangements being “notifiable” in circumstances where this is no longer required by Schedule 17.

A Tax Information and Impact Note covering this instrument was published on 21 July 2020 alongside draft legislation amending Schedule 17 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.