Finance Act 2014

PART 5 U.K. Promoters of tax avoidance schemes

Modifications etc. (not altering text)

C1 Pt. 5 applied (with modifications) by 1992 c. 7 (N.I.), s. 11A(1)(3) (as inserted (with effect in accordance with Sch. 1 para. 35 of the amending Act) by National Insurance Contributions Act 2015 (c. 5), Sch. 1 para. 12)

C2 Pt. 5 applied (with modifications) by 1992 c. 4, s. 11A(1)(3) (as inserted (with effect in accordance with Sch. 1 para. 35 of the amending Act) by National Insurance Contributions Act 2015 (c. 5), Sch. 1 para. 3)

C3 Pt. 5 modified (12.2.2015 for specified purposes, 12.4.2015 in so far as not already in force) by National Insurance Contributions Act 2015 (c. 5), Sch. 2 Pt. 2, Sch. 2 para. 33(2)

C4 Pt. 5 applied (with modifications) by Social Security Contributions and Benefits Act 1992 (c. 4), s. 16(1)(d) (as inserted (12.4.2015) by National Insurance Contributions Act 2015 (c. 5), Sch. 2 para. 32)

Introduction U.K.

234 Meaning of “relevant proposal” and “relevant arrangements” U.K.

(1) “Relevant proposal” means a proposal for arrangements which (if entered into) would be relevant arrangements (whether the proposal relates to a particular person or to any person who may seek to take advantage of it).

(2) Arrangements are “relevant arrangements” if—

(a) they enable, or might be expected to enable, any person to obtain a tax advantage, and

(b) the main benefit, or one of the main benefits, that might be expected to arise from the arrangements is the obtaining of that advantage.

(3) “Tax advantage” includes—

(a) relief or increased relief from tax,

(b) repayment or increased repayment of tax,

(c) avoidance or reduction of a charge to tax or an assessment to tax,

(d) avoidance of a possible assessment to tax,

(e) deferral of a payment of tax or advancement of a repayment of tax, and

(f) avoidance of an obligation to deduct or account for tax.

(4) “Arrangements” includes any agreement, scheme, arrangement or understanding of any kind, whether or not legally enforceable, involving a single transaction or two or more transactions.

235 Carrying on a business “as a promoter” U.K.

(1) A person carrying on a business in the course of which the person is, or has been, a promoter in relation to a relevant proposal or relevant arrangements carries on that business “as a promoter”.

[F1 (1A) For the purposes of this Part, a person is treated as carrying on a business as a promoter if the person is a member of a promotion structure (whether or not the person carries on a business).

Schedule 33A describes the cases in which a person is a member of a promotion structure.]

(2) A person is a “promoter” in relation to a relevant proposal if the person—

(a) is to any extent responsible for the design of the proposed arrangements,

(b) makes a firm approach to another person in relation to the relevant proposal with a view to making the proposal available for implementation by that person or any other person, or

(c) makes the relevant proposal available for implementation by other persons.

(3) A person is a “promoter” in relation to relevant arrangements if the person—

(a) is by virtue of subsection (2)(b) or (c), a promoter in relation to a relevant proposal which is implemented by the arrangements, or

(b) is responsible to any extent for the design, organisation or management of the arrangements.

(4) For the purposes of this Part a person makes a firm approach to another person in relation to a relevant proposal if—

(a) the person communicates information about the relevant proposal to the other person at a time when the proposed arrangements have been substantially designed,

(b) the communication is made with a view to that other person or any other person entering into transactions forming part of the proposed arrangements, and

(c) the information communicated includes an explanation of the tax advantage that might be expected to be obtained from the proposed arrangements.

(5) For the purposes of subsection (4) proposed arrangements have been substantially designed at any time if by that time the nature of the transactions to form them (or part of them) has been sufficiently developed for it to be reasonable to believe that a person who wished to obtain the tax advantage mentioned in subsection (4)(c) might enter into—

(a) transactions of the nature developed, or

(b) transactions not substantially different from transactions of that nature.

(6) A person is not a promoter in relation to a relevant proposal or relevant arrangements by reason of anything done in prescribed circumstances.

(7) Regulations under subsection (6) may contain provision having retrospective effect.

Textual Amendments

F1 S. 235(1A) inserted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 9

236 Meaning of “intermediary” U.K.

For the purposes of this Part a person (“A”) is an intermediary in relation to a relevant proposal if—

(a) A communicates information about the relevant proposal to another person in the course of a business,

(b) the communication is made with a view to that other person, or any other person, entering into transactions forming part of the proposed arrangements, and

(c) A is not a promoter in relation to the relevant proposal.

[F2 Stop notices U.K.

Textual Amendments

F2 Ss. 236A-236K and cross-heading inserted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 1

236A Power to give stop notices U.K.

(1) An authorised officer may give a person a notice (a “stop notice”) if the authorised officer suspects that the recipient promotes, or has promoted, arrangements of a description specified in the notice or proposals for such arrangements.

(2) A description of arrangements may be specified in a stop notice only if the authorised officer considers that—

(a) condition A and any of conditions B and C are met, or

(b) conditions B and D are met.

(3) Condition A is that arrangements of that description—

(a) would, if the arrangements had been implemented before 5 April 2019, have been likely to—

(i) cause a person to be treated as taking a relevant step for the purposes of Part 7A of ITEPA 2003 by virtue of paragraph 1(1) of Schedule 11 to F(No.2)A 2017 (loan charge: employment income), or

(ii) cause a relevant benefit to be treated as arising for the purposes of section 23A to 23H of ITTOIA 2005 by virtue of paragraph 1 of Schedule 12 to F(No.2)A 2017 (loan charge: trading income),

(b) would be the same, or similar, in form or effect to arrangements or proposed arrangements to which a reference number has been allocated under section 311 of FA 2004 or paragraph 22 of Schedule 17 to F(No.2)A 2017,

(c) would be the same, or similar, in form or effect to arrangements in relation to which a person has been given a follower notice under section 204 (circumstances in which a follower notice may be given), or

(d) would be the same, or similar, in form or effect to arrangements of a description specified in regulations made by the Commissioners under this section.

(4) Condition B is that—

(a) arrangements of that description, or proposals for such arrangements, have been, or are likely to be, marketed (in any manner, whether by the recipient of the stop notice or otherwise) as capable of enabling a person to obtain a particular tax advantage, and

(b) it is more likely than not that arrangements of that description are not capable of enabling that advantage to be obtained.

(5) Condition C is that condition A is met as a result of the allocation of a reference number under section 311 of FA 2004 or paragraph 22 of Schedule 17 to F(No.2)A 2017 in relation to arrangements or proposed arrangements (the “reference arrangements”) and—

(a) HMRC has required any person to provide information or documents under section 310A or 311C of FA 2004 or paragraph 19 or 22C of Schedule 17 to F(No.2)A 2017 in relation to the reference arrangements and that person has not complied with that requirement, or

(b) HMRC has made an application to the tribunal under section 308A(2) of FA 2004 or paragraph 16 of Schedule 17 to F(No.2)A 2017 in relation to the reference arrangements.

(6) Condition D is that—

(a) arrangements of that description or proposals for such arrangements would be relevant arrangements or relevant proposals (see section 234), and

(b) the recipient of the notice is subject to a conduct notice or a monitoring notice.

(7) For the purposes of this section, and sections 236B to 236K and 272A, a person promotes arrangements or a proposal for arrangements if the person does anything in connection with those arrangements or that proposal that would, if those arrangements or that proposal were relevant arrangements or a relevant proposal, cause the person to be carrying on a business as a promoter, or to be treated as such, for the purposes of this Part.

236B Effect of stop notices U.K.

(1) A person subject to a stop notice must not promote—

(a) any arrangements that meet the description specified in the notice or that have a similar form or effect to arrangements of that description, or

(b) any proposal for such arrangements.

(2) A person is subject to a stop notice for the purposes of this Part if—

(a) the person is the recipient of the notice;

(b) the person is a body corporate or partnership that the recipient of the notice controls or has significant influence over;

(c) the person controls or has significant influence over a body corporate or partnership that is the recipient of the notice;

(d) the recipient of the notice makes a relevant transfer to the person.

(3) If the recipient of a stop notice controls or has significant influence over a person that is a body corporate or partnership, the recipient must—

(a) within 5 days of the giving of the notice, give a copy of the notice to that person, and

(b) within 15 days of the giving of the notice, provide HMRC with the information mentioned in subsection (6) in relation to that person.

(4) If the recipient of a stop notice is a body corporate or partnership, it must—

(a) within 5 days of the giving of the notice, give a copy of the notice to each person who controls or has significant influence over it, and

(b) within 15 days of the giving of the notice, provide HMRC with the information mentioned in subsection (6) in relation to each such person.

(5) If the recipient of a stop notice makes a relevant transfer to a person, the recipient must—

(a) before making the transfer, give a copy of the notice to that person, and

(b) within 15 days of making the transfer, provide HMRC with the information mentioned in subsection (6) in relation to that person.

(6) The information referred to in subsections (3)(b), (4)(b) and (5)(b) in relation to a person is—

(a) the person's name;

(b) any name under which the person carries on a business and any previous name or pseudonym known by the recipient of the stop notice;

(c) the person's business address or registered office.

(7) An authorised officer may give a copy of a stop notice to any person the officer considers the recipient of the notice is obliged to give a copy to as a result of subsection (3)(a), (4)(a) or [F3 (5)(a)] (but this does not affect the obligation of the recipient to do so).

(8) Sub-paragraphs (5) to (11) of paragraph 13A of Schedule 34 (meaning of “control” and “significant influence”) apply to this section as they apply to Part 2 of that Schedule.

(9) In this section “relevant transfer” has the meaning it has in paragraph 5 of Schedule 33A (promotion structures).

Textual Amendments

F3 Word in s. 236B(7) substituted (22.2.2024) by Finance Act 2024 (c. 3), s. 34(5)

236C Quarterly returns U.K.

(1) A person subject to a stop notice must provide a return to HMRC containing the information described in subsection (4) for each relevant period.

(2) The first relevant period is the 3 month period commencing on the day the stop notice was given to its recipient.

(3) Each successive 3 month period that commences within the period of 3 years commencing on that day is a relevant period.

(4) The information that must be contained in a return under subsection (1) is—

(a) the number (which may be nil) of relevant clients of the person subject to the stop notice in the relevant period to which the return relates,

(b) if the return is the return for the first relevant period, the number (which may be nil) of relevant clients of the person in the period ending with the commencement of the first relevant period,

(c) in respect of each relevant client—

(i) the client's name and address,

(ii) the unique taxpayer reference number (if any) allocated to the client by HMRC, and

(iii) the client's national insurance number (if any),

(d) any name by which any such arrangements or proposal is known or is marketed.

(5) For the purposes of this section, a person (“C”) is a “relevant client” of a person subject to a stop notice (“P”) in a period if at any time during that period—

(a) P has made a firm approach to C in relation to a proposal for arrangements that fall within the description specified in the stop notice;

(b) P has made the proposal available for implementation by C;

(c) P has provided services to C in relation to arrangements falling within the description specified in the stop notice, or in relation to a proposal for such arrangements.

(6) If the person does not have the information referred to in subsection (4)(c)(ii) or (iii) in respect of a relevant client, the return must instead include a statement of that fact.

(7) A return for a relevant period must be provided to HMRC before the end of the period of 15 days commencing on the last day of the relevant period.

(8) An authorised officer may by notice to a person subject to the obligation to make a return under sub-paragraph (1) provide for that obligation to cease to have effect in relation to that person from such time as may be specified in the notice.

236D Withdrawal of stop notices U.K.

(1) A person subject to a stop notice may make a request for the notice to cease to have effect in relation to that person if the person—

(a) does not intend to promote, and has not promoted, arrangements that fall within the description of arrangements specified in the notice or proposals for such arrangements,

(b) considers that the conditions for specifying the description of arrangements (see section 236A(2)) were not met, or

(c) considers that there are other reasons for it to cease to have effect.

(2) A request under subsection (1) must—

(a) be made in writing to an authorised officer,

(b) be made before the end of the period of 30 days beginning with the day on which the stop notice was given,

(c) contain an explanation of the basis for the request, and

(d) be accompanied by such evidence to support that explanation as is reasonable to provide in the circumstances.

(3) The authorised officer to whom the request is made must decide whether or not the notice is to cease to have effect in relation to the person who made the request.

(4) The authorised officer must give the person who made the request a notice setting out the officer's decision (“a decision notice”) before the end of the period of 45 days beginning with the day on which the request was received.

(5) If at the end of that period the authorised officer has not given a decision notice, the stop notice ceases to have effect in relation to the person who made the request.

(6) An authorised officer may also determine that a stop notice is to cease to have effect in relation to a person who has not made a request under subsection (1) by giving the person a notice (“a withdrawal notice”).

(7) A decision notice or a withdrawal notice that provides for a stop notice to cease to have effect in relation to a person must specify the date on which it ceases to have effect in relation to that person, which may be earlier or later than the date on which the decision notice or withdrawal notice is given.

236E Appeal against decision not to withdraw stop notice U.K.

(1) A person may appeal against a refusal by an authorised officer to grant a request that a stop notice cease to have effect in relation to that person.

(2) Notice of appeal must be given—

(a) in writing to the officer who gave the decision notice under section 236D(4), and

(b) within the period of 30 days beginning with the day on which the decision notice was given.

(3) The notice of appeal must state the grounds of appeal.

(4) The grounds of appeal that may be stated are the same as the grounds on which a person may request that a stop notice cease to have effect as mentioned in section 236D(1).

(5) On an appeal that is notified to the tribunal, the tribunal may—

(a) confirm the refusal, or

(b) direct that the stop notice is to cease to have effect in relation to a person from such date as the tribunal consider appropriate (which may be earlier or later than the date on which the tribunal makes that direction).

(6) Subject to this section, the provisions of Part 5 of TMA 1970 relating to appeals have effect in relation to an appeal under this section.

236F Suspension of stop notice pending appeal U.K.

(1) A person who makes an appeal under section 236E may make a suspension request.

(2) A “suspension request” is a request that a stop notice which is the subject of an appeal under that section is to cease to have effect in relation to the person making the request until the appeal has been determined, withdrawn or otherwise disposed of.

(3) A suspension request must—

(a) be made in writing to the authorised officer to whom the notice of appeal was given,

(b) contain an explanation of the basis for the request, and

(c) be accompanied by such evidence to support that explanation as is reasonable to provide in the circumstances.

(4) The authorised officer to whom the suspension request is made must decide whether or not the notice is to cease to have effect in relation to the person who made the request until the appeal has been determined, withdrawn or otherwise disposed of.

(5) When deciding whether or not to grant a suspension request, the officer must have regard to the need to protect—

(a) the public revenue, and

(b) persons to whom arrangements or proposals for arrangements of the description specified in the stop notice might be marketed.

(6) The authorised officer must give the person who made the suspension request a notice setting out the officer's decision (“a suspension decision notice”) before the end of the period of 30 days beginning with the day on which the request was received.

(7) If at the end of that period the authorised officer has not given a suspension decision notice, the stop notice ceases to have effect in relation to the person who made the request until either—

(a) the officer gives a decision notice that provides that the suspension request is not to be granted, or

(b) the appeal has been determined, withdrawn or otherwise disposed of.

236G Automatic withdrawal of certain stop notices U.K.

(1) This section applies to a stop notice if—

(a) condition A in section 236A was met in relation to the giving of that notice as a result of the allocation of a reference number under section 311 of FA 2004 or paragraph 22 of Schedule 17 to F(No.2)A 2017, and

(b) that reference number has been withdrawn.

(2) Where this section applies to a stop notice, it ceases to have effect in relation to every person who is subject to it from the time when the reference number in question was withdrawn.

(3) HMRC must give a notice to—

(a) each person who has been given a stop notice to which this section applies, and

(b) every other person that HMRC is aware was subject to that notice.

(4) A notice given under subsection (3) must state the reason for the withdrawal of the reference number in question and may contain such further explanation as HMRC consider appropriate (for example, it may contain HMRC's view of the arrangements or proposed arrangements to which the reference number relates).

236H Publication U.K.

(1) An authorised officer may publish—

(a) the fact that a person is subject to a stop notice;

(b) details of any arrangements or proposal for arrangements promoted by that person that the officer considers meet the description specified in the notice.

(2) Publication under subsection (1) may also include the following information about the person—

(a) the person's name;

(b) the person's business address or registered office;

(c) any other information that the authorised officer considers it appropriate to publish in order to make clear the person's identity.

(3) The reference in subsection (2)(a) to the person's name includes any name under which the person carries on a business and any previous name or pseudonym.

(4) Publication of information about a person subject to a stop notice may not take place before the end of the appeal period, but an authorised officer may, at any time after the notice is given, publish the description of arrangements or proposal for arrangements specified in the notice and the fact that arrangements of that description are subject to a stop notice.

(5) The “appeal period” means—

(a) the period during which a request under section 236D(1) (withdrawal of stop notices) could be made,

(b) where such a request was made, the period during which an appeal to the tribunal against a decision notice under section 236D(4) could be brought under section 236E, or

(c) where an appeal mentioned in paragraph (b) has been brought, the period during which the proceedings on that appeal to the tribunal have not been determined, withdrawn or otherwise disposed of.

(6) For the purposes of subsection (5)(c), reference to proceedings on an appeal to the tribunal do not include any proceedings on appeal from the tribunal.

236I Publication where stop notice automatically withdrawn U.K.

(1) Where an authorised officer has published anything under section 236H in relation to a stop notice that has ceased to have effect as a result of section 236G, an authorised officer must publish—

(a) the fact it has ceased to have effect;

(b) the reason for the withdrawal of the reference number in question (see section 236G(1));

(c) such further explanation as HMRC consider appropriate.

(2) Where an authorised officer is required to publish information as a result of subsection (1), the officer may also publish information about the persons who were subject to such a stop notice (including the information mentioned in section 236H(1) and (2)).

236J Disclosure to clients and intermediaries U.K.

(1) A person (“P”) subject to a stop notice who (at any time) has promoted arrangements falling within the description specified in that notice, or has promoted a proposal for such arrangements, must give a notice to—

(a) each of P's clients in relation to those arrangements or that proposal, and

(b) each person who P could reasonably be expected to know is an intermediary in relation to any such proposal.

(2) The notice must—

(a) set out the fact that a person is subject to a stop notice,

(b) set out the fact that the arrangements or proposed arrangements the recipient of the notice is a client or intermediary in relation to meets the description of arrangements specified in the notice, and

(c) be accompanied with a copy of the stop notice.

(3) A person (“C”) is a client of P if—

(a) P has made a firm approach to C in relation to a proposal for arrangements that fall within the description specified in the stop notice,

(b) P has made the proposal available for implementation by C, or

(c) P has provided services to C in relation to arrangements falling within the description specified in the stop notice, or in relation to a proposal for such arrangements.

(4) A notice under this section must be given—

(a) to each person who was a client of P on or before the day on which P became aware that P was subject to the notice, within 5 days of that day;

(b) to each person that P could reasonably be expected to know was an intermediary in relation to the proposal in question on or before the day on which P became aware that P was subject to the notice, within 5 days of that day;

(c) to each person that P subsequently becomes aware is an intermediary in relation to the proposal in question, within 5 days of P becoming so aware.

236K Notification of interested persons by HMRC U.K.

(1) This section applies if an authorised officer suspects that a person subject to a stop notice has failed to comply with section 236B(1).

(2) Where this section applies, the officer may provide a copy of the stop notice to any person the officer considers might be affected by that failure or the giving of the stop notice (for example, any person who is a client of the person who failed to comply with section 236B(1) or who otherwise makes use of arrangements that must not be promoted as a result of the stop notice).

(3) Where the officer provides a copy of a stop notice to a person under subsection (2) the officer may also provide any of the following information to that person—

(a) the name of the person who failed to comply with section 236B(1);

(b) the business address or registered office of that person;

(c) any other information that the authorised officer considers it appropriate to provide in order to make clear the identity of that person;

(d) details of any arrangements or proposal for arrangements promoted by that person that meet the description specified in it;

(e) an explanation of the effect of the stop notice;

(f) an explanation of why the stop notice was given.]

Conduct notices U.K.

237 Duty to give conduct notice U.K.

(1) Subsections (5) to (9) apply if an authorised officer becomes aware at any time that a person ( “ P ”) who is carrying on a business as a promoter—

(a) has, in the period of 3 years ending with that time, met one or more threshold conditions, and

(b) was carrying on a business as a promoter when P met that condition.

[F4 (1A) Subsections (5) to (9) also apply if an authorised officer becomes aware at any time (“the relevant time”) that—

(a) a person has, in the period of 3 years ending with the relevant time, met one or more threshold conditions,

(b) at the relevant time another person (“P”) meets one or more of those conditions by virtue of Part 2 of Schedule 34 (meeting the threshold conditions: bodies corporate and partnerships), and

(c) P is, at the relevant time, carrying on a business as a promoter.]

(2) Part 1 of Schedule 34 sets out the threshold conditions and describes how they are met.

(3) Part 2 of that Schedule contains provision about [F5 when a person is treated as meeting a threshold condition].

(4) See also Schedule 36 (which contains provision about the meeting of threshold conditions and other conditions by partnerships).

[F6 (5) The authorised officer must determine—

(a) in a case within subsection (1), whether or not P's meeting of the condition mentioned in subsection (1)(a) (or, if more than one condition is met, the meeting of all of those conditions, taken together) should be regarded as significant in view of the purposes of this Part, or

(b) in a case within subsection (1A), whether or not—

F7 (i) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(ii) P's meeting of the condition [F8 (or, if more than one condition is met, the meeting of all of those conditions, taken together)] as mentioned in subsection (1A)(b),

should be regarded as significant in view of those purposes.]

[F9 (5A) In determining under subsection (5)(b) whether or not P's meeting of the condition (or conditions) should be regarded as significant, the authorised officer must determine whether the meeting of that condition (or those conditions taken together) by the person mentioned in subsection (1A)(a) should be regarded as significant in view of the purposes of this Part.

(5B) If the officer determines that the meeting of the condition (or those conditions) by that person should be regarded as significant, the officer must determine that P's meeting of that condition (or those conditions) should be regarded as significant.]

(6) Subsection (5) does not apply if a conduct notice or a monitoring notice already has effect in relation to P.

(7) If the authorised officer determines under [F10 subsection (5)(a)] that P's meeting of the condition or conditions in question should be regarded as significant, the officer must give P a conduct notice, unless subsection (8) applies.

[F11 (7A) If the authorised officer determines under subsection (5)(b) that F12 ...—

F13 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) P's meeting of the condition or conditions as mentioned in subsection (1A)(b),

should be regarded as significant, the officer must give P a conduct notice, unless subsection (8) applies.]

(8) This subsection applies if the authorised officer determines that, having regard to the extent of the impact that P's activities as a promoter are likely to have on the collection of tax, it is inappropriate to give P a conduct notice.

[F14 (8A) Where the authorised officer is required to make a determination under subsection (5), the officer must determine that the meeting of the condition (or if more than one is met, all of them) should be regarded as significant if P falls within the case described in paragraph 2 of Schedule 33A (multiple entity promoter).]

(9) The authorised officer must determine under subsection (5) that the meeting of the condition (or all the conditions) F15 ... should be regarded as significant if the condition (or any of the conditions) is in any of the following paragraphs of Schedule 34—

(a) paragraph 2 (deliberate tax defaulters);

(b) paragraph 3 (breach of Banking Code of Practice);

(c) paragraph 4 (dishonest tax agents);

(d) paragraph 6 (persons charged with certain offences);

(e) paragraph 7 (opinion notice of GAAR Advisory Panel).

[F16 (10) If, as a result of subsection (1A), subsections (5) to (9) apply to a person, this does not prevent the giving of a conduct notice to the person mentioned in subsection (1A)(a).]

Textual Amendments

F4 S. 237(1A) inserted (with effect in accordance with Sch. 19 para. 9 of the amending Act) by Finance Act 2015 (c. 11), Sch. 19 para. 2(2)

F5 Words in s. 237(3) substituted (with effect in accordance with Sch. 19 para. 9 of the amending Act) by Finance Act 2015 (c. 11), Sch. 19 para. 2(3)

F6 S. 237(5) substituted (with effect in accordance with Sch. 19 para. 9 of the amending Act) by Finance Act 2015 (c. 11), Sch. 19 para. 2(4)

F7 S. 237(5)(b)(i) and word omitted (with effect in accordance with s. 121(6) of the amending Act) by virtue of Finance Act 2021 (c. 26), Sch. 30 para. 22(1)(a)(i)

F8 Words in s. 237(5)(b)(ii) substituted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 22(1)(a)(ii)

F9 S. 237(5A)(5B) inserted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 22(1)(b)

F10 Words in s. 237(7) substituted (with effect in accordance with Sch. 19 para. 9 of the amending Act) by Finance Act 2015 (c. 11), Sch. 19 para. 2(5)

F11 S. 237(7A) inserted (with effect in accordance with Sch. 19 para. 9 of the amending Act) by Finance Act 2015 (c. 11), Sch. 19 para. 2(6)

F12 Word in s. 237(7A) omitted (with effect in accordance with s. 121(6) of the amending Act) by virtue of Finance Act 2021 (c. 26), Sch. 30 para. 22(1)(c)(i)

F13 S. 237(7A)(a) omitted (with effect in accordance with s. 121(6) of the amending Act) by virtue of Finance Act 2021 (c. 26), Sch. 30 para. 22(1)(c)(ii)

F14 S. 237(8A) inserted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 11

F15 Words in s. 237(9) omitted (with effect in accordance with Sch. 19 para. 9 of the amending Act) by virtue of Finance Act 2015 (c. 11), Sch. 19 para. 2(7)

F16 S. 237(10) inserted (with effect in accordance with Sch. 19 para. 9 of the amending Act) by Finance Act 2015 (c. 11), Sch. 19 para. 2(8)

[F17 237A Duty to give conduct notice: defeat of promoted arrangements U.K.

(1) If an authorised officer becomes aware at any time (“the relevant time”) that a person ( “ P ”) who is carrying on a business as a promoter meets any of the conditions in subsections (11) to (13), the officer must determine whether or not P's meeting of that condition should be regarded as significant in view of the purposes of this Part.

But see also subsection (14).

(2) An authorised officer must make the determination set out in subsection (3) if the officer becomes aware at any time ( “ the section 237A(2) relevant time ”) that—

(a) a person meets a condition in subsection (11), (12) or (13), and

(b) at the section 237A(2) relevant time another person (“P”), who is carrying on a business as a promoter, meets that condition by virtue of Part 4 of Schedule 34A (meeting the section 237A conditions: bodies corporate and partnerships).

(3) The authorised officer must determine whether or not—

F18 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) P's meeting of the condition as mentioned in subsection (2)(b),

should be regarded as significant in view of the purposes of this Part.

[F19 (3A) In determining under subsection (3) whether or not P's meeting of the condition should be regarded as significant, the authorised officer must determine whether the meeting of that condition by the person mentioned in subsection (2)(a) should be regarded as significant in view of the purposes of this Part.

(3B) If the officer determines that the meeting of the condition by that person should be regarded as significant, the officer must determine that P's meeting of that condition should be regarded as significant.]

[F20 (3C) If a person meets a condition in subsection (11), (12) or (13) and the person falls within the case described in paragraph 2 of Schedule 33A (multiple entity promoter), the authorised officer must determine (whether under subsection (1) or (3)(a) or (b)) that the meeting of the condition should be regarded as significant.]

(4) Subsections (1) and (2) do not apply if a conduct notice or monitoring notice already has effect in relation to P.

(5) Subsection (1) does not apply if, at the relevant time, an authorised officer is under a duty to make a determination under section 237(5) in relation to P.

(6) Subsection (2) does not apply if, at the section 237A(2) relevant time, an authorised officer is under a duty to make a determination under section 237(5) in relation to P.

(7) But in a case where subsection (1) does not apply because of subsection (5), or subsection (2) does not apply because of subsection (6), subsection (5) of section 237 has effect as if—

(a) the references in paragraph (a) of that subsection to “subsection (1)”, and “subsection (1)(a)” included subsection (1) of this section, and

(b) in paragraph (b) of that subsection the reference to “subsection (1A)(a)” included a reference to subsection (2)(a) of this section and the reference to subsection (1A)(b) included a reference to subsection (2)(b) of this section.

(8) If the authorised officer determines under subsection (1) that P's meeting of the condition in question should be regarded as significant, the officer must give P a conduct notice, unless subsection (10) applies.

(9) If the authorised officer determines under subsection (3) that—

F21 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) P's meeting of the condition as mentioned in subsection (2)(b),

should be regarded as significant in view of the purposes of this Part, the officer must give P a conduct notice, unless subsection (10) applies.

(10) This subsection applies if the authorised officer determines that, having regard to the extent of the impact that P's activities as a promoter are likely to have on the collection of tax, it is inappropriate to give P a conduct notice.

(11) The condition in this subsection is that in the period of 3 years ending with the relevant time at least 3 relevant defeats have occurred in relation to P.

(12) The condition in this subsection is that at least two relevant defeats have occurred in relation to P at times when a single defeat notice under section 241A(2) or (6) had effect in relation to P.

(13) The condition in this subsection is that at least one relevant defeat has occurred in relation to P at a time when a double defeat notice under section 241A(3) had effect in relation to P.

(14) A determination that the condition in subsection (12) or (13) is met cannot be made unless—

(a) the defeat notice in question still has effect when the determination is made, or

(b) the determination is made on or before the 90th day after the day on which the defeat notice in question ceased to have effect.

(15) Schedule 34A sets out the circumstances in which a “relevant defeat” occurs in relation to a person and includes provision limiting what can amount to a further relevant defeat in relation to a person (see paragraph 6).

Textual Amendments

F17 Ss. 237A-237D inserted (15.9.2016) by Finance Act 2016 (c. 24), s. 160(2)

F18 S. 237A(3)(a) omitted (with effect in accordance with s. 121(6) of the amending Act) by virtue of Finance Act 2021 (c. 26), Sch. 30 para. 22(2)(a)

F19 S. 237A(3A)(3B) inserted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 22(2)(b)

F20 S. 237A(3C) inserted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 12

F21 S. 237A(9)(a) omitted (with effect in accordance with s. 121(6) of the amending Act) by virtue of Finance Act 2021 (c. 26), Sch. 30 para. 22(2)(c)

Modifications etc. (not altering text)

C5 S. 237A modified (15.9.2016) by Finance Act 2016 (c. 24), s. 160(20)(21)

C6 S. 237A modified (15.9.2016) by Finance Act 2016 (c. 24), s. 160(22)

237B Duty to give further conduct notice where provisional notice not complied with U.K.

(1) An authorised officer must give a conduct notice to a person (“P”) who is carrying on a business as a promoter if—

(a) a conduct notice given to P under section 237A(8)—

(i) has ceased to have effect otherwise than as a result of section 237D(2) or 241(3) or (4), and

(ii) was provisional immediately before it ceased to have effect,

(b) the officer determines that P had failed to comply with one or more conditions in the conduct notice,

(c) the conduct notice relied on a Case 3 relevant defeat,

(d) since the time when the conduct notice ceased to have effect, one or more relevant defeats falling within subsection (2) have occurred in relation to—

(i) P, and

(ii) any arrangements to which the Case 3 relevant defeat also relates, and

(e) had that relevant defeat or (as the case may be) those relevant defeats, occurred before the conduct notice ceased to have effect, an authorised officer would have been required to notify the person under section 237C(3) that the notice was no longer provisional.

(2) A relevant defeat falls within this subsection if it occurs by virtue of Case 1 or Case 2 in Schedule 34A.

(3) Subsection (1) does not apply if the authorised officer determines that, having regard to the extent of the impact that the person's activities as a promoter are likely to have on the collection of tax, it is inappropriate to give the person a conduct notice.

(4) Subsection (1) does not apply if a conduct notice or monitoring notice already has effect in relation to the person.

(5) For the purposes of this Part a conduct notice “relies on a Case 3 relevant defeat” if it could not have been given under the following condition.

The condition is that paragraph 9 of Schedule 34A had effect with the substitution of “ 100% of the tested arrangements ” for “75% of the tested arrangements”.

Textual Amendments

F17 Ss. 237A-237D inserted (15.9.2016) by Finance Act 2016 (c. 24), s. 160(2)

237C When a conduct notice given under section 237A(8) is “provisional” U.K.

(1) This section applies to a conduct notice which—

(a) is given to a person under section 237A(8), and

(b) relies on a Case 3 relevant defeat.

(2) The notice is “provisional” at all times when it has effect, unless an authorised officer notifies the person that the notice is no longer provisional.

(3) An authorised officer must notify the person that the notice is no longer provisional if subsection (4) or (5) applies.

(4) This subsection applies if—

(a) the condition in subsection (5)(a) is not met, and

(b) a full relevant defeat occurs in relation to P.

(5) This subsection applies if—

(a) two, or all three, of the relevant defeats by reference to which the conduct notice is given would not have been relevant defeats if paragraph 9 of Schedule 34A had effect with the substitution of “ 100% of the tested arrangements ” for “75% of the tested arrangements”, and

(b) the same number of full relevant defeats occur in relation to P.

(6) A “full relevant defeat” occurs in relation to P if—

(a) a relevant defeat occurs in relation to P otherwise than by virtue of Case 3 in paragraph 9 of Schedule 34A, or

(b) circumstances arise which would be a relevant defeat in relation to P by virtue of paragraph 9 of Schedule 34A if that paragraph had effect with the substitution of “ 100% of the tested arrangements ” for “75% of the tested arrangements”.

(7) In determining under subsection (6) whether a full relevant defeat has occurred in relation to P, assume that in paragraph 6 of Schedule 34A (provision limiting what can amount to a further relevant defeat in relation to a person) the first reference to a “relevant defeat” does not include a relevant defeat by virtue of Case 3 in paragraph 9 of Schedule 34A.

Textual Amendments

F17 Ss. 237A-237D inserted (15.9.2016) by Finance Act 2016 (c. 24), s. 160(2)

237D Judicial ruling upholding asserted tax advantage: effect on conduct notice which is provisional U.K.

(1) Subsection (2) applies if at any time—

(a) a conduct notice which relies on a Case 3 relevant defeat (see section 237B(5)) is provisional, and

(b) a court or tribunal upholds a corresponding tax advantage which has been asserted in connection with any of the related arrangements to which that relevant defeat relates (see paragraph 5(2) of Schedule 34A).

(2) The conduct notice ceases to have effect when that judicial ruling becomes final.

(3) An authorised officer must give the person to whom the conduct notice was given a written notice stating that the conduct notice has ceased to have effect.

(4) For the purposes of this section, a tax advantage is “asserted” in connection with any arrangements if a person makes a return, claim or election on the basis that the tax advantage arises from those arrangements.

In relation to the arrangements mentioned in paragraph (b) of subsection (1) “corresponding tax advantage” means a tax advantage corresponding to any tax advantage the counteraction of which contributed to the relevant defeat mentioned in that paragraph.

(5) For the purposes of this section a court or tribunal “upholds” a tax advantage if—

(a) the court or tribunal makes a ruling to the effect that no part of the tax advantage is to be counteracted, and

(b) that judicial ruling is final.

(6) For the purposes of this Part a judicial ruling is “final” if it is—

(a) a ruling of the Supreme Court, or

(b) a ruling of any other court or tribunal in circumstances where—

(i) no appeal may be made against the ruling,

(ii) if an appeal may be made against the ruling with permission, the time limit for applications has expired and either no application has been made or permission has been refused,

(iii) if such permission to appeal against the ruling has been granted or is not required, no appeal has been made within the time limit for appeals, or

(iv) if an appeal was made, it was abandoned or otherwise disposed of before it was determined by the court or tribunal to which it was addressed.

(7) In this section references to “counteraction” include anything referred to as a counteraction in any of Conditions A to F in paragraphs 11 to 16 of Schedule 34A.]

Textual Amendments

F17 Ss. 237A-237D inserted (15.9.2016) by Finance Act 2016 (c. 24), s. 160(2)

238 Contents of a conduct notice U.K.

(1) A conduct notice is a notice requiring the person to whom it has been given (“the recipient”) to comply with conditions specified in the notice.

(2) Before deciding on the terms of a conduct notice, the authorised officer must give the person to whom the notice is to be given an opportunity to comment on the proposed terms of the notice.

(3) A notice may include only conditions that it is reasonable to impose for any of the following purposes—

(a) to ensure that the recipient provides adequate information to its clients about relevant proposals, and relevant arrangements, in relation to which the recipient is a promoter;

(b) to ensure that the recipient provides adequate information about relevant proposals in relation to which it is a promoter to persons who are intermediaries in relation to those proposals;

(c) to ensure that the recipient does not fail to comply with any duty under a specified disclosure provision;

(d) to ensure that the recipient does not discourage others from complying with any obligation to disclose to HMRC information of a description specified in the notice;

(e) to ensure that the recipient does not enter into an agreement with another person (“C”) which relates to a relevant proposal or relevant arrangements in relation to which the recipient is a promoter, on terms which—

(i) impose a contractual obligation on C which falls within paragraph 11(2) or (3) of Schedule 34 (contractual terms restricting disclosure), or

(ii) impose on C obligations within both paragraph 11(4) and (5) of that Schedule (contractual terms requiring contribution to fighting funds and restricting settlement of proceedings);

(f) to ensure that the recipient does not promote relevant proposals or relevant arrangements which rely on, or involve a proposal to rely on, one or more contrived or abnormal steps to produce a tax advantage;

(g) to ensure that the recipient does not fail to comply with any stop notice which has effect under paragraph 12 of Schedule 34.

[F22 (h) to ensure that the recipient provides such information or documents to HMRC as are required for the purpose of monitoring whether and to what extent the recipient is complying with any of the conditions in the notice.]

(4) References in subsection (3) to ensuring that adequate information is provided about proposals or arrangements include—

(a) ensuring the adequacy of the description of the arrangements or proposed arrangements;

(b) ensuring that the information includes an adequate assessment of the risk that the arrangements or proposed arrangements will fail;

(c) ensuring that the information does not falsely state, and is not likely to create a false impression, that HMRC have (formally or informally) considered, approved or expressed a particular opinion in relation to the proposal or arrangements.

(5) In subsection (3)(c) “specified disclosure provision” means a disclosure provision that is specified in the notice; and for this purpose “disclosure provision” means any of the following—

(a) section 308 of FA 2004 (disclosure of tax avoidance schemes: duties of promoter);

(b) section 312 of FA 2004 (duty of promoter to notify client of number);

(c) sections 313ZA and 313ZB of FA 2004 (duties to provide details of clients and certain others);

(d) Part 1 of Schedule 36 to FA 2008 (duties to provide information and produce documents).

(6) In subsection (4)(b) “fail”, in relation to arrangements or proposed arrangements, means not result in a tax advantage which the arrangements or (as the case may be) proposed arrangements might be expected to result in.

(7) The Treasury may by regulations amend the definition of “disclosure provision” in subsection (5).

Textual Amendments

F22 S. 238(3)(h) inserted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 23

239 Section 238: supplementary U.K.

(1) In section 238 the following expressions are to be interpreted as follows.

(2) “Adequate” means adequate having regard to what it might be reasonable for a client or (as the case may be) an intermediary to expect; and “adequacy” is to be interpreted accordingly.

(3) A person (“C”) is a “client” of a promoter, if at any time when a conduct notice has effect, the promoter—

(a) makes a firm approach to C in relation to a relevant proposal with a view to the promoter making the proposal available for implementation by C or another person;

(b) makes a relevant proposal available for implementation by C;

(c) takes part in the organisation or management of relevant arrangements entered into by C.

(4) The recipient of a conduct notice “promotes” a relevant proposal if it—

(a) takes part in designing the proposal,

(b) makes a firm approach to a person in relation to the proposal with a view to making the proposal available for implementation by that person or another person, or

(c) makes the proposal available for implementation by persons (other than the recipient).

(5) The recipient of a conduct notice “promotes” relevant arrangements if it takes part in designing, organising or managing the arrangements.

[F23 239A Conduct notices: transferees U.K.

(1) This section applies if an authorised officer becomes aware at any time that a person to whom a conduct notice has been given ( “ P ”) has made a relevant transfer within the meaning of paragraph 5 of Schedule 33A (promotion structures) to another person ( “D”).

(2) The authorised officer may give D a conduct notice.

(3) If the proposed terms of the conduct notice to be given to D are the same as the terms of the conduct notice given to P, section 238(2) (content of conduct notice: opportunity to comment) does not apply in relation to the proposed terms.

(4) If the proposed terms of the conduct notice to be given to D differ from the terms of the conduct notice given to P, section 238(2) applies in relation to the proposed terms as if the reference in that provision to “the proposed terms of the notice” were a reference to the differences between the proposed terms of the conduct notice to be given to D and the terms of the conduct notice given to P.

(5) Where a person is given a conduct notice under this section, but considers that they were not a person to whom a relevant transfer was made (such that this section applies), they may make representations to that effect to the authorised officer.

(6) If (in light of those representations) the authorised officer considers that this section did not apply at the time the conduct notice was given, the officer must withdraw the notice.]

Textual Amendments

F23 S. 239A inserted (with effect in accordance with Sch. 30 para. 20(2) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 20(1)

240 Amendment [F24 , withdrawal or reissue] of conduct notice U.K.

(1) This section applies where a conduct notice has been given to a person.

(2) An authorised officer may at any time amend the notice.

(3) An authorised officer—

(a) may withdraw the notice if the officer thinks it is not necessary for it to continue to have effect, F25 ...

F25 (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F26 (4) An authorised officer may (instead of amending the notice) withdraw the notice and give a new conduct notice.]

Textual Amendments

F24 Words in s. 240 heading substituted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 24(2)

F25 S. 240(3)(b) and word omitted (with effect in accordance with s. 121(6) of the amending Act) by virtue of Finance Act 2021 (c. 26), Sch. 30 para. 24(3)

F26 S. 240(4) inserted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 24(4)

241 Duration of conduct notice U.K.

(1) A conduct notice has effect from the date specified in it as its commencement date.

(2) A conduct notice ceases to have effect—

(a) at the end of [F27 the relevant period] beginning with its commencement date, F28 ...

F29 (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F30 (2A) But where a new conduct notice was given under section 240(4) that has a commencement date that is later than 12 months before the end of the relevant period in relation to the original notice, that new notice ceases to have effect at the end of the relevant period in relation to the original notice.]

(3) A conduct notice ceases to have effect if withdrawn by an authorised officer under section 240.

(4) A conduct notice ceases to have effect in relation to a person when a monitoring notice takes effect in relation to that person.

[F31 (4A) For the purposes of subsection (2)(a), the relevant period in relation to a conduct notice is calculated in accordance with this table—

If the authorised officer is aware that the person to whom the notice is given meets	the relevant period is such period as may be notified in accordance with subsection (4B) or (4C) up to
1 ordinary condition	2 years
2 ordinary conditions	4 years
3 or more ordinary conditions	5 years
1 significant condition	3 years
1 significant condition and 1 or more other significant or ordinary conditions	5 years

Subsection (4E) makes provision for the relevant period to be extended in certain circumstances.

(4B) When an authorised officer gives a person a conduct notice the officer must notify the person of the relevant period calculated by reference to the conditions which the officer is aware the person has met at that time.

(4C) If an authorised officer becomes aware that a person in relation to whom a conduct notice has effect has met one or more conditions which were not taken into account when the relevant period was calculated at the time the notice was given, the officer may give the person a notice—

(a) stating that the relevant period has been recalculated to take account of the additional conditions, and

(b) notifying the person of —

(i) the new relevant period as recalculated in accordance with the table in subsection (4A), and

(ii) the new date at the end of which the conduct notice will cease to have effect.

(4D) For the purposes of the table in subsection (4A)—

(a) a condition is significant if it is—

(i) a threshold condition listed in section 237(9), or

(ii) a condition in section 237A(11), (12) or (13) in respect of which an authorised officer makes a determination (whether in accordance with section 237A(1) or (2) or for the purposes of this paragraph) that meeting the condition should be regarded as significant in view of the purposes of this Part, and

(b) a condition is ordinary if it is a threshold condition not listed in section 237(9).

(4E) In calculating the relevant period for the purposes of subsection (2)(a) no account is to be taken of any day on all or part of which the effect of the conduct notice in question has been suspended by an authorised officer.

(4F) Where an authorised officer suspends the effect of a conduct notice, the officer must, as soon as practicable, notify the person to whom the notice was given of the suspension.

(4G) Where an authorised officer determines that the effect of a conduct notice should be resumed, the officer must, as soon as practicable, notify the person to whom the notice was given—

(a) that its effect has been resumed,

(b) of the number of days that are not to be taken into account in calculating the relevant period in accordance with subsection (4E), and

(c) of the new date at the end of which the relevant period is expected to end.

(4H) Where a conduct notice has been given to a person and the person is subsequently given a notice under paragraph 1 of Schedule 36 of FA 2008 as it has effect as a result of section 272A (power to obtain information and documents), in calculating the relevant period for the purposes of subsection (2)(a) no account is to be taken of any day on which the person has not complied with that notice.

(4I) For the purposes of subsection (4H), a person has not complied with a notice given under that paragraph on each day—

(a) beginning with the day after the last day on which the person could have complied with the notice, and

(b) ending with the day before the day (or, if more than one, the last day) on which the person provides the information or produces the documents required by the notice.

(4J) As soon as reasonably practicable after the day mentioned in subsection (4I)(b), an authorised officer must give the person to whom the conduct notice was given notice of—

(a) the number of days that are not to be taken into account in calculating the relevant period, and

(b) of the new date at the end of which the relevant period is expected to end.]

[F32 (5) See also section 237D(2) (provisional conduct notice affected by judicial ruling).]

Textual Amendments

F27 Words in s. 241(2)(a) substituted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 25(a)(i)

F28 Word in s. 241(2)(a) omitted (with effect in accordance with s. 121(6) of the amending Act) by virtue of Finance Act 2021 (c. 26), Sch. 30 para. 25(a)(ii)

F29 S. 241(2)(b) omitted (with effect in accordance with s. 121(6) of the amending Act) by virtue of Finance Act 2021 (c. 26), Sch. 30 para. 25(a)(iii)

F30 S. 241(2A) inserted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 25(b)

F31 S. 241(4A)-(4J) inserted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 25(c)

F32 S. 241(5) inserted (15.9.2016) by Finance Act 2016 (c. 24), s. 160(6)

[F33 Defeat notices U.K.

Textual Amendments

F33 Ss. 241A, 241B and cross-heading inserted (15.9.2016) by Finance Act 2016 (c. 24), s. 160(3)

241A Defeat notices U.K.

(1) This section applies in relation to a person (“P”) only if P is carrying on a business as a promoter.

(2) An authorised officer, or an officer of Revenue and Customs with the approval of an authorised officer, may give P a notice if the officer concerned has become aware of one (and only one) relevant defeat which has occurred in relation to P in the period of 3 years ending with the day on which the notice is given.

(3) An authorised officer, or an officer of Revenue and Customs with the approval of an authorised officer, may give P a notice if the officer concerned has become aware of two (but not more than two) relevant defeats which have occurred in relation to P in the period of 3 years ending with the day on which the notice is given.

(4) A notice under this section must be given by the end of the 90 days beginning with the day on which the matters mentioned in subsection (2) or (as the case may be) (3) [F34 first come to the attention of an authorised officer].

(5) Subsection (6) applies if—

(a) a single defeat notice which had been given to P (under subsection (2) or (6)) ceases to have effect as a result of section 241B(1), and

(b) in the period when the defeat notice had effect a relevant defeat (“the further relevant defeat”) occurred in relation to P.

(6) An authorised officer or an officer of Revenue and Customs with the approval of an authorised officer may give P a notice in respect of the further relevant defeat (regardless of whether or not it occurred in the period of 3 years ending with the day on which the notice is given).

(7) In this Part—

(a) “single defeat notice” means a notice under subsection (2) or (6);

(b) “double defeat notice” means a notice under subsection (3);

(c) “defeat notice” means a single defeat notice or a double defeat notice.

(8) A defeat notice must—

(a) set out the dates on which the look-forward period for the notice begins and ends;

(b) in the case of a single defeat notice, explain the effect of section 237A(12);

(c) in the case of a double defeat notice, explain the effect of section 237A(13).

(9) HMRC may specify what further information must be included in a defeat notice.

(10) “Look-forward period”—

(a) in relation to a defeat notice under subsection (2) or (3), means the period of 5 years beginning with the day after the day on which the notice is given;

(b) in relation to a defeat notice under subsection (6), means the period beginning with the day after the day on which the notice is given and ending at the end of the period of 5 years beginning with the day on which the further relevant defeat mentioned in subsection (6) occurred in relation to P.

(11) A defeat notice has effect throughout its look-forward period unless it ceases to have effect earlier in accordance with section 241B(1) or (4).

Textual Amendments

F34 Words in s. 241A(4) substituted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 26

Modifications etc. (not altering text)

C7 S. 241A modified (15.9.2016) by Finance Act 2016 (c. 24), s. 160(20)(21)

241B Judicial ruling upholding asserted tax advantage: effect on defeat notice U.K.

(1) If the relevant defeat to which a single defeat notice relates is overturned (see subsection (5)), the notice has no further effect on and after the day on which it is overturned.

(2) Subsection (3) applies if one (and only one) of the relevant defeats in respect of which a double defeat notice was given is overturned.

(3) The notice is to be treated for the purposes of this Part (including this section) as if it had always been a single defeat notice given (in respect of the other of the two relevant defeats) on the date on which the notice was in fact given.

The look-forward period for the notice is accordingly unchanged.

(4) If both the relevant defeats to which a double defeat notice relates are overturned (on the same date), that notice has no further effect on and after that date.

(5) A relevant defeat specified in a defeat notice is “overturned” if—

(a) the notice could not have specified that relevant defeat if paragraph 9 of Schedule 34A had effect with the substitution of “ 100% of the tested arrangements ” for “75% of the tested arrangements”, and

(b) at a time when the notice has effect a court or tribunal upholds a corresponding tax advantage which has been asserted in connection with any of the related arrangements to which the relevant defeat relates (see paragraph 5(2) of Schedule 34A).

Accordingly the relevant defeat is overturned on the day on which the judicial ruling mentioned in paragraph (b) becomes final.

(6) If a defeat notice ceases to have effect as a result of subsection (1) or (4) an authorised officer, or an officer of Revenue and Customs with the approval of an authorised officer, must notify the person to whom the notice was given that it has ceased to have effect.

(7) If subsection (3) has effect in relation to a defeat notice, an authorised officer, or an officer of Revenue and Customs with the approval of an authorised officer, must notify the person of the effect of that subsection.

(8) For the purposes of this section, a tax advantage is “asserted” in connection with any arrangements if a person makes a return, claim or election on the basis that the tax advantage arises from those arrangements.

(9) In relation to the arrangements mentioned in paragraph (b) of subsection (5) “corresponding tax advantage” means a tax advantage corresponding to any tax advantage the counteraction of which contributed to the relevant defeat mentioned in that paragraph.

(10) For the purposes of this section a court or tribunal “upholds” a tax advantage if—

(a) the court or tribunal makes a ruling to the effect that no part of the tax advantage is to be counteracted, and

(b) that judicial ruling is final.

(11) In this section references to “counteraction” include anything referred to as a counteraction in any of Conditions A to F in paragraphs 11 to 16 of Schedule 34A.]

Monitoring notices: procedure and publication U.K.

242 Monitoring notices: duty to apply to tribunal U.K.

(1) If—

(a) a conduct notice has effect in relation to a person who is carrying on a business as a promoter, and

(b) an authorised officer determines that the person

[F35 (i) has failed to comply with one or more conditions in the notice][F36 , or

(ii) has provided false or misleading information or documents in relation to the notice,]

the authorised officer must [F37 , within the period of 12 months beginning with the day on which the authorised officer makes the determination,] apply to the tribunal for approval to give the person a monitoring notice.

[F38 (1A) Where subsection (1B) applies, an authorised officer, or an officer of Revenue and Customs with the approval of an authorised officer, may apply to the tribunal for approval to give a person (“P”) a monitoring notice.

(1B) This subsection applies where—

(a) within the period of 6 years after a conduct notice ceases to have effect in relation to P, the officer mentioned in subsection (1A) determines that P—

(i) failed to comply with one or more conditions in the notice, or

(ii) provided false or misleading information or documents in relation to the notice, and

(b) the officer could not reasonably have been expected to make the determination when the conduct notice had effect.

(1C) An application under subsection (1A) may not be made after the period of 12 months beginning with the day on which the officer makes the determination mentioned in subsection (1B)(a).

(1D) Where subsection (1E) applies, an authorised officer, or an officer of Revenue and Customs with the approval of an authorised officer, may apply to the tribunal for approval to give a person (“D”) a monitoring notice.

(1E) This subsection applies where—

(a) at any time before the end of the period of 6 years after a conduct notice ceases to have effect in relation to a person (“P”), an authorised officer determines (whether before or after the notice ceases to have effect) that P—

(i) failed to comply with one or more conditions in the notice, or

(ii) provided false or misleading information or documents in relation to the notice,

(b) before the end of that period, the authorised officer becomes aware that P has made a relevant transfer within the meaning of paragraph 5 of Schedule 33A (promotion structures) to D (whether before or after the notice ceases to have effect), and

(c) the officer could not reasonably have been expected—

(i) to apply to the tribunal for approval to give P a monitoring notice, or

(ii) to give P a monitoring notice following such an application,

before the relevant transfer took place.

(1F) For the purposes of an application under subsection (1D), any act or omission of P by reference to which the determination mentioned in subsection (1E)(a) was made is to be treated as an act or omission of D.

(1G) An application under subsection (1D) may not be made after the period of 12 months beginning with the day on which the officer makes the determination mentioned in subsection (1E)(a).]

(2) An application under subsection (1) must include a draft of the monitoring notice.

(3) Subsection (1) does not apply if—

(a) the condition (or all the conditions) mentioned in subsection (1)(b) were imposed under subsection (3)(a), (b) or (c) of section 238, and

(b) the authorised officer considers that the failure to comply with the condition (or all the conditions, taken together) is such a minor matter that it should be disregarded for the purposes of this section.

(4) Where an authorised officer makes an application to the tribunal under subsection (1), the officer must at the same time give notice to the person to whom the application relates.

(5) The notice under subsection (4) must state which condition (or conditions) the authorised officer has determined under subsection (1)(b) that the person has failed to comply with and the reasons for that determination.

[F39 (6) At a time when a notice given under section 237A is provisional, no determination is to be made under subsection (1) in respect of the notice.

(7) If a promoter fails to comply with conditions in a conduct notice at a time when the conduct notice is provisional, nothing in subsection (6) prevents those failures from being taken into account under subsection (1) at any subsequent time when the conduct notice is not provisional.]

Textual Amendments

F35 Words in s. 242(1)(b) renumbered as s. 242(1)(b)(i) (with effect in accordance with Sch. 30 para. 27(3) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 27(1)(a)(i)

F36 S. 242(1)(b)(ii) and word inserted (with effect in accordance with Sch. 30 para. 27(3) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 27(1)(a)(ii)

F37 Words in s. 242(1) inserted (with effect in accordance with Sch. 30 para. 27(3) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 27(1)(b)

F38 S. 242(1A)-(1G) inserted (with effect in accordance with Sch. 30 para. 27(3) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 27(2)

F39 S. 242(6)(7) inserted (15.9.2016) by Finance Act 2016 (c. 24), s. 160(4)

243 Monitoring notices: tribunal approval U.K.

(1) On an application under section 242, the tribunal may approve the giving of a monitoring notice only if—

(a) the tribunal is satisfied that, in the circumstances, the authorised officer would be justified in giving the monitoring notice, and

(b) the person to whom the monitoring notice is to be given (“the affected person”) has been given a reasonable opportunity to make representations to the tribunal.

(2) The tribunal may amend the draft notice included with the application under section 242.

(3) If the representations that the affected person makes to the tribunal include a statement that in the affected person's view it was not reasonable to include the condition mentioned in section 242(1)(b) in the conduct notice, the tribunal must refuse to approve the giving of the monitoring notice if it is satisfied that it was not reasonable to include that condition (but see subsection (4)).

(4) If the representations made to the tribunal include the statement described in subsection (3) and the determination under section 242(1)(b) is a determination that there has been a failure to comply with more than one condition in the conduct notice—

(a) subsection (3) does not apply, but

(b) in deciding whether or not to approve the giving of the monitoring notice, the tribunal is to assume, in the case of any condition that the tribunal considers it was not reasonable to include in the conduct notice, that there has been no failure to comply with that condition.

244 Monitoring notices: content and issuing U.K.

(1) Where the tribunal has approved the giving of a monitoring notice, the authorised officer must give the notice to the person to whom it relates.

(2) A monitoring notice given under subsection (1) or paragraph 9 or 10 of Schedule 36 must—

(a) explain the effect of the monitoring notice and specify the date from which it takes effect;

(b) inform the recipient of the right to request the withdrawal of the monitoring notice under section 245.

(3) In addition, a monitoring notice must—

(a) if given under subsection (1), state which condition (or conditions) it has been determined the person has failed to comply with and the reasons for that determination;

(b) if given under paragraph 9 or 10 of Schedule 36, state the date of the original monitoring notice and name the partnership to which that notice was given.

(4) The date specified under subsection (2)(a) must not be earlier than the date on which the monitoring notice is given.

(5) In this Part, a person in relation to whom a monitoring notice has effect is called a “monitored promoter”.

[F40 244A Monitoring notices: transferees U.K.

(1) This section applies if an authorised officer becomes aware at any time that a person to whom a monitoring notice has been given ( “ P ”) has made a relevant transfer within the meaning of paragraph 5 of Schedule 33A (promotion structures) to another person ( “D”).

(2) The authorised officer may give D a monitoring notice.

(3) Where a person is given a monitoring notice under this section, but considers that they were not a person to whom a relevant transfer was made (such that this section applies), they may make representations to that effect to the authorised officer.

(4) If (in light of those representations) the authorised officer considers that this section did not apply at the time the monitoring notice was given, the officer must withdraw the notice.

(5) Subsections (2) to (4) of section 244 (monitoring notice: content and issuing) apply in relation to a monitoring notice given under subsection (2) of this section as they apply to a monitoring notice given under subsection (1) of that section, but as if the reference in subsection (3)(a) of that section to “the person” were a reference to P.]

Textual Amendments

F40 S. 244A inserted (with effect in accordance with Sch. 30 para. 21(3) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 21(1)

245 Withdrawal of monitoring notice U.K.

(1) A person in relation to whom a monitoring notice has effect may, at any time after the end of the period of 12 months beginning with the end of the appeal period, request that the notice should cease to have effect.

(2) The “appeal period” means—

(a) the period during which an appeal could be brought against the approval by the tribunal of the giving of the monitoring notice, or

(b) where an appeal mentioned in paragraph (a) has been brought, the period during which that appeal has not been finally determined, withdrawn or otherwise disposed of.

(3) A request under this section is to be made in writing to an authorised officer.

(4) Where a request is made under this section, an authorised officer must within 30 days beginning with the day on which the request is received determine either—

(a) that the monitoring notice is to cease to have effect, or

(b) that the request is to be refused.

(5) The matters to be taken into account by an authorised officer in making a determination under subsection (4) include—

(a) whether or not the person subject to the monitoring notice has, since the time when the notice took effect, engaged in behaviour of a sort that conditions included in a conduct notice in accordance with section 238(3) could be used to regulate;

(b) whether or not it appears likely that the person will in the future engage in such behaviour;

(c) the person's record of compliance, or failure to comply, with obligations imposed on it under this Part [F41 (including any obligations connected with any stop notice the person is subject to)], since the time when the monitoring notice took effect.

(6) An authorised officer—

(a) may withdraw a monitoring notice if the officer thinks it is not necessary for it to continue to have effect, and

(b) in considering whether or not that is necessary, the officer must take into account the matters in paragraphs (a) to (c) of subsection (5).

(7) If the authorised officer makes a determination under subsection (4)(a), or decides to withdraw a monitoring notice under subsection (6), the officer must also determine that the person is, or is not, to be given a follow-on conduct notice.

(8) “Follow-on conduct notice” means a conduct notice taking effect immediately after the monitoring notice ceases to have effect.

[F42 (8A) For the purposes of determining whether a person should be given a follow-on conduct notice, the meeting of the condition in paragraph 12 of Schedule 34 (stop notices) by the person at a time when they are subject to a monitoring notice is to be regarded as significant by the authorised officer making the determination (see section 237(5)).]

(9) Where the monitoring notice mentioned in subsection (1) is a replacement monitoring notice—

(a) in subsection (1) the reference to the end of the appeal period is to be read as a reference to whichever is the later of the end of the appeal period for the original monitoring notice and the date the replacement monitoring notice takes effect, and

(b) in subsection (5)(a) and (c) the time referred to is to be read as the time when the original monitoring notice (see paragraph 11(2) of Schedule 36) took effect.

Textual Amendments

F41 Words in s. 245(5)(c) inserted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 2(2)

F42 S. 245(8A) inserted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 2(3)

246 Notification of determination under section 245 U.K.

(1) Where an authorised officer makes a determination under section 245(4), that officer, or an officer of Revenue and Customs with that officer's approval, must notify the person who made the request of the determination.

(2) If the determination is that the monitoring notice is to cease to have effect, the notice must—

(a) specify the date from which the monitoring notice is to cease to have effect, and

(b) inform the person of the determination made under section 245(7).

(3) If the determination is that the request is to be refused, the notice must inform the person who made the request—

(a) of the reasons for the refusal, and

(b) of the right to appeal under section 247.

247 Appeal against refusal to withdraw monitoring notice U.K.

(1) A person may appeal against a refusal by an authorised officer of a request that a monitoring notice should cease to have effect.

(2) Notice of appeal must be given—

(a) in writing to the officer who gave the notice of the refusal under section 245, and

(b) within the period of 30 days beginning with the day on which notice of the refusal was given.

(3) The notice of appeal must state the grounds of appeal.

(4) On an appeal that is notified to the tribunal, the tribunal may—

(a) confirm the refusal, or

(b) direct that the monitoring notice is to cease to have effect.

(5) Subject to this section, the provisions of Part 5 of TMA 1970 relating to appeals have effect in relation to an appeal under this section.

248 Publication by HMRC U.K.

(1) An authorised officer may publish the fact that a person is a monitored promoter.

(2) Publication under subsection (1) may also include the following information about the monitored promoter—

(a) its name;

(b) its business address or registered office;

(c) the nature of the business [F43 as a promoter which the monitored promoter is carrying on];

(d) any other information that the authorised officer considers it appropriate to publish in order to make clear the monitored promoter's identity.

(3) The reference in subsection (2)(a) to the monitored promoter's name includes any name under which it carries on a business as a promoter and any previous name or pseudonym.

(4) Publication under subsection (1) may also include a statement of which of the conditions in a conduct notice it has been determined that the person (or, in the case of a replacement monitoring notice, the person to whom the original monitoring notice was given) has failed to comply with.

(5) Publication may not take place before the end of the appeal period (or, in the case of a replacement monitoring notice, the appeal period for the original monitoring notice).

(6) The “appeal period”, in relation to a monitoring notice, means—

(a) the period during which an appeal could be brought against the approval by the tribunal of the giving of the notice, or

(b) where an appeal mentioned in paragraph (a) has been brought, the period during which that appeal has not been finally determined, withdrawn or otherwise disposed of.

(7) Publication under this section is to be in such manner as the authorised officer thinks fit; but see subsection (8).

(8) If an authorised officer publishes the fact that a person is a monitored promoter and the monitoring notice is withdrawn, the officer must publish the fact of the withdrawal in the same way as the officer published the fact that the person was a monitored promoter.

Textual Amendments

F43 Words in s. 248(2)(c) substituted (with effect in accordance with Sch. 30 para. 21(3) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 21(2)

249 Publication by monitored promoter U.K.

(1) A person who is given a monitoring notice (“the monitored promoter”) must give the persons mentioned in subsection (6) a notice stating—

(a) that it is a monitored promoter, and

(b) which of the conditions in a conduct notice it has been determined that it (or, if the monitoring notice is a replacement monitoring notice, the person to whom that notice was given) has failed to comply with.

(2) If the monitoring notice is a replacement monitoring notice, the notice under subsection (1) must also identify the original monitoring notice.

(3) If regulations made by the Commissioners so require, the monitored promoter must publish on the internet—

(a) the information mentioned in paragraph (a) and (b) of subsection (1), and

(b) its promoter reference number (see section 250).

(4) Subsection (1) and any duty imposed under subsection (3) or (10) do not apply until the end of the period of 10 days beginning with the end of the appeal period (and also see subsection (9)).

(5) The “appeal period” means—

(a) the period during which an appeal could be brought against the approval by the tribunal of the giving of the monitoring notice, or

(b) where an appeal mentioned in paragraph (a) has been brought, the period during which that appeal has not been finally determined, withdrawn or otherwise disposed of.

(6) The notice under subsection (1) must be given—

(a) to any person who becomes a client of the monitored promoter while the monitoring notice has effect, and

(b) (except in a case where the monitoring notice is a replacement monitoring notice) any person who is a client of the monitored promoter at the time the monitoring notice takes effect.

(7) A person (“C”) is a client of a monitored promoter at the time a monitoring notice takes effect if during the period beginning with the date the conduct notice mentioned in subsection (1)(b) takes effect and ending with that time the promoter—

(a) made a firm approach to C in relation to a relevant proposal with a view to the promoter making the proposal available for implementation by C or another person;

(b) made a relevant proposal available for implementation by C;

(c) took part in the organisation or management of relevant arrangements entered into by C.

(8) A person becomes a client of a monitored promoter if the promoter does any of the things mentioned in paragraph (a) to (c) of subsection (7) in relation to that person.

(9) In the case of a person falling within subsection (6)(a), notice under subsection (1) may be given within the period of 10 days beginning with the day on which the person first became a client of the monitored promoter if that period would expire at a later date than the date on which notification would otherwise be required by virtue of subsection (4).

(10) A monitored promoter must also include in any prescribed publication or prescribed correspondence—

(a) the information mentioned in paragraph (a) and (b) of subsection (1), and

(b) its promoter reference number (see section 250).

(11) Notification under subsection (1), publication under subsection (3) or inclusion of the information required by subsection (10) is to be in such form and manner as is prescribed.

(12) Where the monitoring notice mentioned in subsection (1) is a replacement monitoring notice, the reference in subsection (4) to the end of the appeal period is to be read as a reference to whichever is the later of the end of the appeal period for the original monitoring notice and the date the replacement monitoring notice takes effect.

Allocation and distribution of promoter reference number U.K.

250 Allocation of promoter reference number U.K.

(1) Where a monitoring notice is given to a person (“the monitored promoter”) HMRC must as soon as practicable after the end of the appeal period—

(a) allocate the monitored promoter a reference number, and

(b) notify the relevant persons of that number.

(2) “Relevant persons” means—

(a) the monitored promoter, F44 ...

[F45 (aa) any person who HMRC know falls within the case described in paragraph 3 of Schedule 33A by virtue of acting under the instruction or guidance of the monitored promoter, and]

(b) if the monitored promoter is resident outside the United Kingdom, any person who HMRC know is an intermediary in relation to a relevant proposal of the monitored promoter.

(3) The “appeal period” means—

(a) the period during which an appeal could be brought against the approval by the tribunal of the giving of the monitoring notice, or

(b) where an appeal mentioned in paragraph (a) has been brought, the period during which that appeal has not been finally determined, withdrawn or otherwise disposed of.

(4) The duty in subsection (1) does not apply if the monitoring notice is set aside following an appeal.

(5) A number allocated to a person under this section is referred to in this Part as a “promoter reference number”.

(6) Where the monitoring notice mentioned in subsection (1) is a replacement monitoring notice—

(a) in subsection (1) the reference to the end of the appeal period is to be read as a reference to whichever is the later of the end of the appeal period for the original monitoring notice and the date the replacement monitoring notice takes effect, and

(b) in subsection (4) the reference to the monitoring notice is to be read as a reference to the original monitoring notice.

Textual Amendments

F44 Word in s. 250(2)(a) omitted (with effect in accordance with s. 121(6) of the amending Act) by virtue of Finance Act 2021 (c. 26), Sch. 30 para. 13(a)

F45 S. 250(2)(aa) inserted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 13(b)

251 Duty of monitored promoter to notify clients [F46 etc] of number U.K.

(1) This section applies where a person who is a monitored promoter (“the monitored promoter”) is notified under section 250 of a promoter reference number.

(2) The monitored promoter must, within the relevant period, notify the promoter reference number to—

(a) any person who has become its client at any time in the period beginning with the day on which the monitoring notice in relation to the monitored promoter took effect and ending with the day on which the monitored promoter was notified of that number,

(b) any person who becomes its client after the end of the period mentioned in paragraph (a) but while the monitoring notice has effect,

(c) any person who the monitored promoter could reasonably be expected to know falls within subsection (4), F47 ...

[F48 (ca) any person who falls within the case described in paragraph 3 of Schedule 33A by virtue of acting under the instruction or guidance of the monitored promoter, and]

(d) any person who the monitored promoter could reasonably be expected to know is a relevant intermediary in relation to a relevant proposal of the monitored promoter.

(3) A person (“C”) becomes a client of a monitored promoter if the promoter does any of the following in relation to C—

(a) makes a firm approach to C in relation to a relevant proposal with a view to the promoter making the proposal available for implementation by C or another person;

(b) makes a relevant proposal available for implementation by C;

(c) takes part in the organisation or management of relevant arrangements entered into by C.

(4) A person falls within this subsection if during the period beginning with the date the conduct notice took effect and ending with the date on which the monitoring notice took effect the person has entered into transactions forming part of relevant arrangements and those arrangements—

(a) enable, or are likely to enable, the person to obtain a tax advantage during the time a monitoring notice has effect, and

(b) are either relevant arrangements in relation to which the monitored promoter is or was a promoter or implement a relevant proposal in relation to which the monitored promoter was a promoter.

(5) A person is a relevant intermediary in relation to a relevant proposal of a monitored promoter if the person meets the conditions in section 236(a) to (c) (meaning of “intermediary”) at any time while the monitoring notice in relation to the monitored promoter has effect.

(6) The “relevant period” means—

(a) in the case of a person falling within subsection (2)(a), the period of 30 days beginning with the day of the notification mentioned in subsection (1),

(b) in the case of a person falling within subsection (2)(b), the period of 30 days beginning with the day on which the person first became a client in relation to the monitored promoter,

(c) in the case of a person falling within subsection (2)(c), the period of 30 days beginning with the later of the day of the notification mentioned in subsection (1) and the first day on which the monitored promoter could reasonably be expected to know that the person fell within subsection (4), and

(d) in the case of a person falling within subsection (2)(d), the period of 30 days beginning with the later of the day of the notification mentioned in subsection (1) and the first day on which the monitored promoter could reasonably be expected to know that the person was a relevant intermediary in relation to a relevant proposal of the monitored promoter.

(7) In this section “the conduct notice” means the conduct notice that the monitored promoter failed to comply with which resulted in the monitoring notice being given to the monitored promoter.

(8) Subsection (2)(c) is to be ignored in a case where the monitoring notice is a replacement monitoring notice.

Textual Amendments

F46 Word in s. 251 heading substituted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 14(2)

F47 Word in s. 251(2)(c) omitted (with effect in accordance with s. 121(6) of the amending Act) by virtue of Finance Act 2021 (c. 26), Sch. 30 para. 14(3)(a)

F48 S. 251(2)(ca) inserted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 14(3)(b)

252 Duty of those notified to notify others of promoter's number U.K.

(1) In this section “notified client” means—

(a) a person who is notified of a promoter reference number under section 250 by reason of being a person falling within subsection (2)(b) of that section, and

(b) a person who is notified of a promoter reference number under section 251.

(2) A notified client must, within 30 days of being notified as described in subsection (1), provide the promoter reference number to any other person who the notified client might reasonably be expected to know has become, or is likely to have become, a client in relation to the monitored promoter concerned at a time when the monitoring notice in relation to that monitored promoter had effect.

(3) A person (“C”) becomes a client of a monitored promoter if the promoter does any of the following in relation to C—

(a) makes a firm approach to C in relation to a relevant proposal with a view to the promoter making the proposal available for implementation by C or another person;

(b) makes a relevant proposal available for implementation by C;

(c) takes part in the organisation or management of relevant arrangements entered into by C.

(4) Where the notified client is an intermediary in relation to a relevant proposal of the monitored promoter concerned, the notified client must also, within 30 days, provide the promoter reference number to—

(a) any person to whom the notified client has, since the monitoring notice in relation to the monitored promoter concerned took effect, communicated in the course of a business information about a relevant proposal of the monitored promoter, and

(b) any person who the notified client might reasonably be expected to know has, since that monitoring notice took effect, entered into, or is likely to enter into, transactions forming part of relevant arrangements in relation to which that monitored promoter is a promoter.

[F49 (4A) Where the notified client is a person who falls within the case described in paragraph 3 of Schedule 33A by virtue of acting under the instruction or guidance of the monitored promoter concerned, the notified client must also, within 30 days, provide the promoter reference number to—

(a) any person to whom the notified client has, since the monitoring notice in relation to the monitored promoter concerned took effect, communicated, for the purposes of any business (whether carried on by the notified client or not), information about a relevant proposal of the monitored promoter, and

(b) any person who the notified client might reasonably be expected to know has, since that monitoring notice took effect, entered into, or is likely to enter into, transactions forming part of relevant arrangements in relation to which that monitored promoter is a promoter.]

(5) [F50 None of subsections (2), (4) or (4A)] impose a duty on a notified client to notify a person of a promoter reference number if the notified client reasonably believes that the person has already been notified of the promoter reference number (whether as a result of a duty under this section or as a result of any of the other provision of this Part).

Textual Amendments

F49 S. 252(4A) inserted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 15(2)

F50 Words in s. 252(5) substituted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 15(3)

253 Duty of persons to notify the Commissioners U.K.

(1) If a person (“N”) is notified of a promoter reference number under section 250, 251 or 252, N must report the number to the Commissioners if N expects to obtain a tax advantage from relevant arrangements in relation to which the monitored promoter to whom the reference number relates (whether that is N or another person) is the promoter.

(2) A report under this section—

(a) must be made in (or, if prescribed circumstances exist, submitted with) each tax return made by N for a period that is or includes a period for which the arrangements enable N to obtain a tax advantage (whether in relation to the tax to which the return relates or another tax);

(b) if no tax return falls within paragraph (a), or in the case mentioned in subsection (3), must contain such information, and be made in such form and manner and within such time, as is prescribed.

(3) The case is that the tax return in which the report would (apart from this subsection) have been made is not submitted—

(a) by the filing date, or

(b) if there is no filing date in relation to the tax return concerned, by such other time that the tax return is required to be submitted by or under any enactment.

(4) Where N expects to obtain the tax advantage referred to in subsection (1) in respect of inheritance tax, stamp duty land tax, stamp duty reserve tax or petroleum revenue tax—

(a) subsection (2) does not apply in relation to that tax advantage, and

(b) a report under this section in respect of that tax must be in such form and manner and contain such information and be made within such time as is prescribed.

(5) Where the relevant arrangements referred to in subsection (1) give rise to N making a claim under section 261B of TCGA 1992 (treating trade loss as CGT loss) or for loss relief under Part 4 of ITA 2007 and that claim is not contained in a tax return, a report under this section must also be made in that claim.

(6) In this section “tax return” means any of the following—

(a) a return under section 8 of TMA 1970 (income tax and capital gains tax: personal return);

(b) a return under section 8A of TMA 1970 (income tax and capital gains tax: trustee's return);

(c) a return under section 12AA of TMA 1970 (income tax and corporation tax: partnership return);

(d) a company tax return under paragraph 3 of Schedule 18 to the FA 1998 (company tax return);

[F51 (da) a return under regulations made under section 105 of FA 2016 (apprenticeship levy);]

(e) a return under section 159 or 160 of FA 2013 (returns and further returns for annual tax on enveloped dwellings).

Textual Amendments

F51 S. 253(6)(da) inserted (15.9.2016) by Finance Act 2016 (c. 24), s. 104(7) (with s. 117)

Obtaining information and documents U.K.

254 Meaning of “monitored proposal” and “monitored arrangements” U.K.

(1) For the purposes of this Part a relevant proposal in relation to which a person (“P”) is a promoter is a “monitored proposal” in relation to P if any of the following dates fell on or after the date on which a monitoring notice took effect—

(a) the date on which P first made a firm approach to another person in relation to the relevant proposal;

(b) the date on which P first made the relevant proposal available for implementation by any other person;

(c) the date on which P first became aware of any transaction forming part of the proposed arrangements being entered into by any person.

(2) For the purposes of this Part relevant arrangements in relation to which a person (“P”) is a promoter are “monitored arrangements” in relation to P if—

(a) P was by virtue of section 235(2)(b) or (c) a promoter in relation to a relevant proposal which was implemented by the arrangements and any of the following fell on or after the date on which the monitoring notice took effect—

(i) the date on which P first made a firm approach to another person in relation to the relevant proposal;

(ii) the date on which P first made the relevant proposal available for implementation by any other person;

(iii) the date on which P first became aware of any transaction forming part of the proposed arrangements being entered into by any person,

(b) the date on which P first took part in designing, organising or managing the arrangements fell on or after the date on which a monitoring notice took effect, or

(c) the arrangements enable, or are likely to enable, the person who has entered into transactions forming them to obtain the tax advantage by reason of which they are relevant arrangements, at any time on or after the date on which a monitoring notice took effect.

255 Power to obtain information and documents U.K.

(1) An authorised officer, or an officer of Revenue and Customs with the approval of an authorised officer, may by notice in writing require any person (“P”) to whom this section applies—

(a) to provide information, or

(b) to produce a document,

if the information or document is reasonably required by the officer for any of the purposes in subsection (3).

(2) This section applies to—

(a) any person who is a monitored promoter, and

(b) any person who is a relevant intermediary in relation to a monitored proposal of a monitored promoter,

and in either case that monitored promoter is referred to below as “the relevant monitored promoter”.

(3) The purposes mentioned in subsection (1) are—

(a) considering the possible consequences of implementing a monitored proposal of the relevant monitored promoter for the tax position of persons implementing the proposal,

(b) checking the tax position of any person who the officer reasonably believes has implemented a monitored proposal of the relevant monitored promoter, or

(c) checking the tax position of any person who the officer reasonably believes has entered into transactions forming monitored arrangements of the relevant monitored promoter.

(4) A person is a “relevant intermediary” in relation to a monitored proposal if the person meets the conditions in section 236(a) to (c) (meaning of “intermediary”) in relation to the proposal at any time after the person has been notified of a promoter reference number of a person who is a promoter in relation to the proposal.

(5) In this section “checking” includes carrying out an investigation or enquiry of any kind.

(6) In this section “tax position”, in relation to a person, means the person's position as regards any tax, including the person's position as regards—

(a) past, present and future liability to pay any tax,

(b) penalties and other amounts that have been paid, or are or may be payable, by or to the person in connection with any tax,

(c) claims, elections, applications and notices that have been or may be made or given in connection with the person's liability to pay any tax,

(d) deductions or repayments of tax, or of sums representing tax, that the person is required to make—

(i) under PAYE regulations, or

(ii) by or under any other provision of the Taxes Acts, and

(e) the withholding by the person of another person's PAYE income (as defined in section 683 of ITEPA 2003).

(7) In this section the reference to the tax position of a person—

(a) includes the tax position of a company that has ceased to exist and an individual who has died, and

(b) is to the person's tax position at any time or in relation to any period.

(8) A notice under subsection (1) which is given for the purpose of checking the tax position of a person mentioned in subsection (3)(b) or (c) may not be given more than 4 years after the person's death.

(9) A notice under subsection (1) may specify or describe the information or documents to be provided or produced.

(10) Information or a document required as a result of a notice under subsection (1) must be provided or produced within—

(a) the period of 10 days beginning with the day on which the notice was given, or

(b) such longer period as the officer who gives the notice may direct.

256 Tribunal approval for certain uses of power under section 255 U.K.

(1) An officer of Revenue and Customs may not, without the approval of the tribunal, give a notice under section 255 requiring a person (“A”) to provide information or produce a document which relates (in whole or in part) to a person who is neither A nor an undertaking in relation to which A is a parent undertaking.

(2) An officer of Revenue and Customs may apply to the tribunal for the approval required by subsection (1); and an application for approval may be made without notice.

(3) The tribunal may approve the giving of the notice only if—

(a) the application for approval is made by, or with the agreement of, an authorised officer,

(b) the tribunal is satisfied that, in the circumstances, the officer giving the notice is justified in doing so,

(c) the person to whom the notice is to be given has been informed that the information or documents referred to in the notice are required and given a reasonable opportunity to make representations to an officer of Revenue and Customs, and

(d) the tribunal has been given a summary of any representations made by that person.

(4) Where a notice is given under section 255 with the approval of the tribunal, it must state that it is given with that approval.

(5) Paragraphs (c) and (d) of subsection (3) do not apply to the extent that the tribunal is satisfied that taking the action specified in those paragraphs might prejudice the assessment or collection of tax.

(6) In subsection (1) “parent undertaking” and “undertaking” have the same meaning as in the Companies Acts (see section 1161 and 1162 of, and Schedule 7 to, the Companies Act 2006).

(7) A decision of the tribunal under this section is final (despite the provisions of sections 11 and 13 of the Tribunals, Courts and Enforcement Act 2007).

257 Ongoing duty to provide information following HMRC notice U.K.

(1) An authorised officer, or an officer of Revenue and Customs with the approval of an authorised officer, may give a notice to a person (“P”) in relation to whom a monitoring notice has effect.

(2) A person to whom a notice is given under subsection (1) must provide prescribed information and produce prescribed documents relating to—

(a) all the monitored proposals and all the monitored arrangements in relation to which the person is a promoter at the time of the notice, and

(b) all the monitored proposals and all the monitored arrangements in relation to which the person becomes a promoter after that time.

(3) The duty under subsection (2)(b) does not apply in relation to any proposals or arrangements in relation to which the person first becomes a promoter after the monitoring notice ceases to have effect.

(4) A notice under subsection (1) must specify the time within which information must be provided or a document produced and different times may be specified for different cases.

258 Duty of person dealing with non-resident monitored promoter U.K.

(1) This section applies where a monitored promoter who is resident outside the United Kingdom has failed to comply with a duty under section 255 or 257 to provide information about a monitored proposal or monitored arrangements.

(2) An authorised officer, or an officer of Revenue and Customs with the approval of an authorised officer, may give a notice to a relevant person which—

(a) specifies or describes the information which the monitored promoter has failed to provide, and

(b) requires the person to provide the information.

(3) A “relevant person” means—

(a) any person who is an intermediary in relation to the monitored proposal concerned, F52 ...

[F53 (aa) any person who falls within the case described in paragraph 3 of Schedule 33A by virtue of acting under the instruction or guidance of the monitored promoter, and]

(b) any person (“A”) to whom the monitored promoter has made a firm approach in relation to the monitored proposal concerned with a view to making the proposal available for implementation by a person other than A.

(4) If an authorised officer is not aware of any person to whom a notice could be given under subsection (2) the authorised officer, or an officer of Revenue and Customs with the approval of the authorised officer, may give a notice to any person who has implemented the proposal which—

(a) specifies or describes the information which the monitored promoter has failed to provide, and

(b) requires the person to provide the information.

(5) If the duty mentioned in subsection (1) relates to monitored arrangements an authorised officer, or an officer of Revenue and Customs with the approval of an authorised officer, may give a notice to any person who has entered into any transaction forming part of the monitored arrangements concerned which—

(a) specifies or describes the information which the monitored promoter has failed to provide, and

(b) requires the person to provide the information.

(6) A notice under this section may be given only if the officer giving the notice reasonably believes that the person to whom the notice is given is able to provide the information requested.

(7) Information required as a result of a notice under this section must be provided within—

(a) the period of 10 days beginning with the day on which the notice was given, or

(b) such longer period as the officer who gives the notice may direct.

Textual Amendments

F52 Word in s. 258(3)(a) omitted (with effect in accordance with s. 121(6) of the amending Act) by virtue of Finance Act 2021 (c. 26), Sch. 30 para. 16(a)

F53 S. 258(3)(aa) inserted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 16(b)

259 Monitored promoters: duty to provide information about clients U.K.

(1) An authorised officer, or an officer of Revenue and Customs with the approval of an authorised officer, may give notice to a person in relation to whom a monitoring notice has effect (“the monitored promoter”).

(2) A person to whom a notice is given under subsection (1) must, for each relevant period, give the officer who gave the notice the information set out in subsection (9) in respect of each person who was its client with reference to that relevant period (see subsections (5) to (8)).

(3) Each of the following is a “relevant period”—

(a) the calendar quarter in which the notice under subsection (1) was given but not including any time before the monitoring notice takes effect,

(b) the period (if any) beginning with the date the monitoring notice takes effect and ending immediately before the beginning of the period described in paragraph (a), and

(c) each calendar quarter after the period described in paragraph (a) but not including any time after the monitoring notice ceases to have effect.

(4) Information required as a result of a notice under subsection (1) must be given—

(a) within the period of 30 days beginning with the end of the relevant period concerned, or

(b) in the case of a relevant period within subsection (3)(b), within the period of 30 days beginning with the day on which the notice under subsection (1) was given if that period would expire at a later time than the period given by paragraph (a).

(5) A person (“C”) is a client of the monitored promoter with reference to a relevant period if—

(a) the promoter did any of the things mentioned in subsection (6) in relation to C at any time during that period, or

(b) the person falls within subsection (7).

(6) Those things are that the monitored promoter—

(a) made a firm approach to C in relation to a relevant proposal with a view to the promoter making the proposal available for implementation by C or another person;

(b) made a relevant proposal available for implementation by C;

(c) took part in the organisation or management of relevant arrangements entered into by C.

(7) A person falls within this subsection if the person has entered into transactions forming part of relevant arrangements and those arrangements—

(a) enable the person to obtain a tax advantage either in that relevant period or a later relevant period, and

(b) are either relevant arrangements in relation to which the monitored promoter is or was a promoter, or implement a relevant proposal in relation to which the monitored promoter was a promoter.

(8) But a person is not a client of the monitored promoter with reference to a relevant period if—

(a) the person has previously been a client of the monitored promoter with reference to a different relevant period,

(b) the promoter complied with the duty in subsection (2) in respect of the person for that relevant period, and

(c) the information provided as a result of complying with that duty remains accurate.

(9) The information mentioned in subsection (2) is—

(a) the person's name and address, and

(b) such other information about the person as may be prescribed.

(10) Where the monitoring notice mentioned in subsection (1) is a replacement monitoring notice, subsection (5)(b) does not impose a duty on the monitored promoter concerned to provide information about a person who has entered into transactions forming part of relevant arrangements (as described in subsection (7)) if the monitored promoter reasonably believes that information about that person has, in relation to those arrangements, already been provided under the original monitoring notice.

260 Intermediaries [F54 etc]: duty to provide information about clients U.K.

(1) An authorised officer, or an officer of Revenue and Customs with the approval of an authorised officer, may give notice to

[F55 (a)] a person (“the intermediary”) who is an intermediary in relation to a relevant proposal which is a monitored proposal of a person in relation to whom a monitoring notice has effect (“the monitored promoter”)[F56 ;

(b) a person who falls within the case described in paragraph 3 of Schedule 33A by virtue of acting under the instruction or guidance of the monitored promoter.]

(2) A person to whom a notice is given under subsection (1) must, for each relevant period, give the officer who gave the notice the information set out in subsection (7) in respect of each person who was its client with reference to that relevant period (see subsections (5) to (6)).

(3) Each of the following is a “relevant period”—

(a) the calendar quarter in which the notice under subsection (1) was given but not including any time before [F57 the person to whom the notice is given] was first notified under section 250, 251 or 252 of the promoter reference number of the monitored promoter,

(b) the period (if any) beginning with the date of the notification under section 250, 251 or 252 and ending immediately before the beginning of the period described in paragraph (a), and

(c) each calendar quarter after the period described in paragraph (a) but not including any time after the monitoring notice mentioned in subsection (1) ceases to have effect.

(4) Information required as a result of a notice under subsection (1) must be given—

(a) within the period of 30 days beginning with the end of the relevant period concerned, or

(b) in the case of a relevant period within subsection (3)(b), within the period of 30 days beginning with the day on which the notice under subsection (1) was given if that period would expire at a later time than the period given by paragraph (a).

(5) A person (“C”) is a client of [F58 the person to whom the notice under subsection (1) is given (“R”)] with reference to a relevant period if during that period—

(a) [F59 R] communicated information to C about a monitored proposal in the course of a business, and

(b) the communication was made with a view to C, or any other person, entering into transactions forming part of the proposed arrangements.

(6) But a person is not a client of [F60 R] with reference to a relevant period if—

(a) the person has previously been a client of [F60 R] with reference to a different relevant period,

(b) [F60 R] complied with the duty in subsection (2) in respect of the person for that relevant period, and

(c) the information provided as a result of complying with that duty remains accurate.

(7) The information mentioned in subsection (2) is—

(a) the person's name and address, and

(b) such other information about the person as may be prescribed.

Textual Amendments

F54 Word in s. 260 heading inserted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 17(2)

F55 Words in s. 260(1) renumbered as s. 260(1)(a) (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 17(3)(a)

F56 S. 260(1)(b) inserted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 17(3)(b)

F57 Words in s. 260(3)(a) substituted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 17(4)

F58 Words in s. 260(5) substituted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 17(5)(a)

F59 Word in s. 260(5)(a) substituted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 17(5)(b)

F60 Word in s. 260(6) substituted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 17(6)

261 Enquiry following provision of client information U.K.

(1) This section applies where—

(a) a person (“the notifying person”) has provided information under section 259 or 260 about a person who was a client of the notifying person with reference to a relevant period (within the meaning of the section concerned) in connection with a particular relevant proposal or particular relevant arrangements, and

(b) an authorised officer suspects that a person in respect of whom information has not been provided under section 259 or 260—

(i) has at any time been, or is likely to be, a party to transactions implementing the proposal, or

(ii) is a party to a transaction forming (in whole or in part) particular relevant arrangements.

(2) The authorised officer may by notice in writing require the notifying person to provide prescribed information in relation to any person whom the notifying person might reasonably be expected to know—

(a) has been, or is likely to be, a party to transactions implementing the proposal, or

(b) is a party to a transaction forming (in whole or in part) the relevant arrangements.

(3) But a notice under subsection (2) does not impose a requirement on the notifying person to provide information which the notifying person has already provided to an authorised officer under section 259 or 260.

(4) The notifying person must comply with a requirement under subsection (2) within—

(a) 10 days of the notice, or

(b) such longer period as the authorised officer may direct.

F61 262 Information required for monitoring compliance with conduct notice U.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F61 S. 262 omitted (with effect in accordance with s. 121(6) of the amending Act) by virtue of Finance Act 2021 (c. 26), Sch. 30 para. 3

263 Duty to notify HMRC of address U.K.

If, on the last day of a calendar quarter, a monitoring notice has effect in relation to a person (“the monitored promoter”) the monitored promoter must within 30 days of the end of the calendar quarter inform an authorised officer of its current address.

264 Failure to provide information: application to tribunal U.K.

(1) This section applies where—

(a) a person (“P”) has provided information or produced a document in purported compliance with section 255, 257, 258, 259, 260, 261 or 262, but

(b) an authorised officer suspects that P has not provided all the information or produced all the documents required under the section concerned.

(2) The authorised officer, or an officer of Revenue and Customs with the approval of the authorised officer, may apply to the tribunal for an order requiring P to—

(a) provide specified information about persons who are its clients for the purposes of the section to which the application relates,

(b) provide specified information, or information of a specified description, about a monitored proposal or monitored arrangements,

(c) produce specified documents relating to a monitored proposal or monitored arrangements.

(3) The tribunal may make an order under subsection (2) in respect of information or documents only if satisfied that the officer has reasonable grounds for suspecting that the information or documents—

(a) are required under section 255, 257, 258, 259, 260, 261 or 262 (as the case may be), or

(b) will support or explain information required under the section concerned.

(4) A requirement by virtue of an order under subsection (2) is to be treated as part of P's duty under section 255, 257, 258, 259, 260, 261 or 262 (as the case may be).

(5) Information or a document required as a result of subsection (2) must be provided, or the document produced, within the period of 10 days beginning with the day on which the order under subsection (2) was made.

(6) An authorised officer may, by direction, extend the 10 day period mentioned in subsection (5).

265 Duty to provide information to monitored promoter U.K.

(1) This section applies where a person has been notified of a promoter reference number—

(a) under section 250 by reason of being a person falling within subsection (2)(b) of that section, or

(b) under section 251 or 252.

(2) The person notified (“C”) must within 10 days notify the person whose promoter reference number it is of—

(a) C's national insurance number (if C has one), and

(b) C's unique tax reference number (if C has one).

(3) If C has neither a national insurance number nor a unique tax reference number, C must within 10 days inform the person whose promoter reference number it is of that fact.

(4) A unique tax reference number is an identification number allocated to a person by HMRC.

(5) Subsection (2) or (3) does not impose a duty on C to provide information which C has already provided to the person whose promoter reference number it is.

Obtaining information and documents: appeals U.K.

266 Appeals against notices imposing information etc requirements U.K.

(1) This section applies where a person is given a notice under section 255, 257, 258, 259, 260, 261 or 262.

(2) The person to whom the notice is given may appeal against the notice or any requirement under the notice.

(3) Subsection (2) does not apply—

(a) to a requirement to provide any information or produce any document that forms part of the person's statutory records, or

(b) if the tribunal has approved the giving of the notice under section 256.

(4) For the purposes of this section, information or a document forms part of a person's statutory records if it is information or a document which the person is required to keep and preserve under or by virtue of—

(a) the Taxes Acts, or

(b) any other enactment relating to a tax.

(5) Information and documents cease to form part of a person's statutory records when the period for which they are required to be preserved by the enactments mentioned in subsection (4) has expired.

(6) Notice of appeal must be given—

(a) in writing to the officer who gave the notice, and

(b) within the period of 30 days beginning with the day on which the notice was given.

(7) The notice of appeal must state the grounds of the appeal.

(8) On an appeal that is notified to the tribunal, the tribunal may—

(a) confirm the notice or a requirement under the notice,

(b) vary the notice or such a requirement, or

(c) set aside the notice or such a requirement.

(9) Where the tribunal confirms or varies the notice or a requirement, the person to whom the notice was given must comply with the notice or requirement—

(a) within such period as is specified by the tribunal, or

(b) if the tribunal does not specify a period, within such period as is reasonably specified in writing by an officer of Revenue and Customs following the tribunal's decision.

(10) A decision of the tribunal on an appeal under this section is final (despite the provisions of sections 11 and 13 of the Tribunals, Courts and Enforcement Act 2007).

(11) Subject to this section, the provisions of Part 5 of TMA 1970 relating to appeals have effect in relation to an appeal under this section.

Obtaining information and documents: supplementary U.K.

267 Form and manner of providing information U.K.

(1) The Commissioners may specify the form and manner in which information required to be provided or documents required to be produced by sections 255 to 264 must be provided or produced if the provision is to be complied with.

(2) The Commissioners may specify that a document must be produced for inspection—

(a) at a place agreed between the person and an officer of Revenue and Customs, or

(b) at such place (which must not be a place used solely as a dwelling) as an officer of Revenue and Customs may reasonably specify.

(3) The production of a document in compliance with a notice under this Part is not to be regarded as breaking any lien claimed on the document.

268 Production of documents: compliance U.K.

(1) Where the effect of a notice under section 255, 257 or 262 is to require a person to produce a document, the person may comply with the requirement by producing a copy of the document, subject to any conditions or exceptions that may be prescribed.

(2) Subsection (1) does not apply where—

(a) the effect of the notice is to require the person to produce the original document, or

(b) an authorised officer, or an officer of Revenue and Customs with the approval of an authorised officer, subsequently makes a request in writing to the person for the original document.

(3) Where an officer requests a document under subsection (2)(b), the person to whom the request is made must produce the document—

(a) within such period, and

(b) at such time and by such means,

as is reasonably requested by the officer.

269 Exception for certain documents or information U.K.

(1) Nothing in this Part requires a person to provide or produce—

(a) information that relates to the conduct of a pending appeal relating to tax or any part of a document containing such information,

(b) journalistic material (as defined in section 13 of the Police and Criminal Evidence Act 1984) or information contained in such material, or

(c) personal records (as defined in section 12 of the Police and Criminal Evidence Act 1984) or information contained in such records (but see subsection (2)).

(2) A notice under this Part may require a person—

(a) to produce documents, or copies of documents, that are personal records, omitting any information whose inclusion (whether alone or with other information) makes the original documents personal records (“personal information”), and

(b) to provide any information contained in such records that is not personal information.

270 Limitation on duty to produce documents U.K.

Nothing in this Part requires a person to produce a document—

(a) which is not in the possession or power of that person, or

(b) if the whole of the document originates more than 6 years before the requirement to produce it would, if it were not for this section, arise.

271 Legal professional privilege U.K.

(1) Nothing in this Part requires any person to disclose to HMRC any privileged information.

(2) “Privileged information” means information with respect to which a claim to legal professional privilege by the person who would (ignoring the effect of this section) be required to disclose it, could be maintained in legal proceedings.

(3) In the case of legal proceedings in Scotland, the reference in subsection (2) to legal professional privilege is to be read as a reference to confidentiality of communications.

272 Tax advisers U.K.

(1) This section applies where a notice is given under section 258(4) or (5) and the person to whom the notice is given is a tax adviser.

(2) The notice does not require a tax adviser—

(a) to provide information about relevant communications, or

(b) to produce documents which are the tax adviser's property and consist of relevant communications.

(3) Subsection (2) does not have effect in relation to—

(a) information explaining any information or document which the person to whom the notice is given has, as tax accountant, assisted any person in preparing for, or delivering to, HMRC, or

(b) a document which contains such information.

(4) But subsection (2) is not disapplied by subsection (3) if the information in question has already been provided, or a document containing the information has already been produced, to an officer of Revenue and Customs.

(5) In this section—

• “relevant communications” means communications between the tax adviser and—

  (a)

  a person in relation to whose tax affairs the tax adviser has been appointed, or

  (b)

  any other tax adviser of such a person,

  the purpose of which is the giving or obtaining of advice about any of those tax affairs, and

• “tax adviser” means a person appointed to give advice about the tax affairs of another person (whether appointed directly by that person or by another tax adviser of that person).

[F62 272A Application of Schedule 36 FA 2008 powers U.K.

(1) Schedule 36 to FA 2008 (information and inspection powers) applies for a relevant purpose in relation to a relevant person as it applies for the purpose of checking the tax position of a person as if—

(a) any provisions which can have no application for that purpose were omitted (for example, paragraphs 10A, 11, 12A and 12B);

(b) references to “the taxpayer” were to “the relevant person”;

(c) references to prejudice to the assessment or collection of tax included prejudice to the fulfilment of a relevant purpose;

(d) references to “business documents” included any documents (or copies of documents) in connection with any relevant arrangements or relevant proposal;

(e) references to a pending appeal relating to tax were to a pending appeal by the relevant person under this Part;

(f) in paragraph 13, after “paragraph 39” there were inserted “ of this Schedule and paragraph 2(3A) of Schedule 35 to FA 2014 ”;

(g) paragraphs 21 to 21B were omitted;

(h) paragraph 25 were omitted;

(i) in paragraph 29(1) for “a taxpayer”, in the first place it occurs, there were substituted “ a relevant person ”;

(j) Part 7 (penalties) were omitted (but see Schedule 35 of this Act).

(2) A person is “relevant” if—

(a) the officer suspects that the person carries on, or has in the past carried on, a business as a promoter in relation to a relevant proposal or relevant arrangements and—

(i) the officer suspects that the person has met a threshold condition,

(ii) the officer suspects the person could be given a defeat notice, or

(iii) the officer suspects the person promotes, or has promoted, arrangements, or proposals for such arrangements, of a description that the officer suspects could be specified in a stop notice,

(b) the officer suspects that—

(i) the person made a relevant transfer, or

(ii) the person is a person to whom a relevant transfer was made, or

(c) the person is, or was, subject to a stop notice, conduct notice or monitoring notice.

(3) The following are “relevant purposes” in relation to a relevant person—

(a) determining whether the relevant person carries on or has in the past carried on a business as a promoter in relation to a relevant proposal or relevant arrangements;

(b) determining whether the relevant person has met a threshold condition;

(c) determining whether the relevant person could be given a defeat notice;

(d) determining whether the person has provided false or misleading information or documents in relation to a stop notice, conduct notice or monitoring notice;

(e) determining whether arrangements, or proposals for such arrangements, that an officer suspects are promoted by the relevant person are of a description that could be specified in a stop notice;

(f) enabling HMRC to understand the operation of arrangements, or proposals for such arrangements, that an officer suspects are promoted by the relevant person;

(g) identifying any other person who has a connection with the relevant person that results (whether solely because of that connection or otherwise) in the relevant person being a member of a promotion structure;

(h) determining whether the relevant person made a relevant transfer, and if so to whom;

(i) determining whether a relevant transfer was made to the relevant person, and if so by whom;

(j) monitoring compliance with any stop notice, conduct notice or monitoring notice the relevant person is subject to.

(4) In this section—

(a) reference to compliance with a stop notice, conduct notice or monitoring notice includes compliance with any provisions of this Part that a person subject to such a notice must comply with;

(b) reference to a person “promoting” is to be construed in accordance with section 236A(7);

(c) “relevant transfer” has the meaning it has in paragraph 5 of Schedule 33A (promotion structures).]

Textual Amendments

F62 S. 272A inserted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 4

273 Confidentiality U.K.

(1) No duty of confidentiality or other restriction on disclosure (however imposed) prevents the voluntary disclosure by a relevant client or a relevant intermediary to HMRC of information or documents about—

[F63 (za) a person subject to a stop notice,

(zb) arrangements or proposals for arrangements of a description specified in a stop notice in relation to which a person subject to a stop notice is a promoter,]

(a) a monitored promoter, or

(b) relevant proposals or relevant arrangements in relation to which a monitored promoter is a promoter.

(2) “Relevant client” [F64 , in relation to a person mentioned in paragraph (za), (zb), (a) or (b) of subsection (1),] means a person in relation to whom the [F65 person so mentioned]—

(a) has made a firm approach in relation to [F66 an applicable] proposal with a view to making the proposal available for implementation by that person or another person;

(b) has made [F67 an applicable] proposal available for implementation by that person;

(c) took part in the organisation or management of [F68 applicable] arrangements entered into by that person.

(3) “Relevant intermediary” means a person who is an intermediary in relation to [F69 an applicable] proposal in relation to which the [F70 person mentioned in paragraphs (za), (zb), (a) or (b) of subsection (1)] is a promoter.

(4) The [F71 applicable] proposal or [F71 applicable] arrangements mentioned in subsection (2) or (3) need not be the [F71 applicable] proposals or [F71 applicable] arrangements to which the disclosure relates.

[F72 (5) Nothing in this section authorises a disclosure of information that would contravene the data protection legislation (but in determining whether a disclosure would do so, take into account this section).

(6) For the purposes of this section, a person mentioned in subsection (1)(za) or (zb) is a promotor of arrangements or a proposal for arrangements if the person would be a promoter of those arrangements or proposal if those arrangements or that proposal were relevant arrangements or a relevant proposal (see section 235(2) to (6) and any regulations made under section 235(6)).

(7) In this section—

• “applicable arrangements” means—

  (a)

  in relation to a disclosure falling within subsection (1)(za) or (zb), arrangements falling within the description specified in the stop notice to which the disclosure relates, or

  (b)

  in relation to a disclosure falling within subsection (1)(a) or (b), relevant arrangements;

• “applicable proposal” means—

  (a)

  in relation to a disclosure falling within subsection (1)(za) or (zb), a proposal for arrangements falling within the description specified in the stop notice to which the disclosure relates, or

  (b)

  in relation to a disclosure falling within subsection (1)(a) or (b), a relevant proposal;

• “the data protection legislation” has the same meaning as in the Data Protection Act 2018 (see section 3(9) of that Act).]

Textual Amendments

F63 S. 273(1)(za)(zb) inserted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 5(2)

F64 Words in s. 273(2) inserted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 5(3)(a)(i)

F65 Words in s. 273(2) substituted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 5(3)(a)(ii)

F66 Words in s. 273(2)(a) substituted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 5(3)(b)

F67 Words in s. 273(2)(b) substituted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 5(3)(b)

F68 Word in s. 273(2)(c) substituted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 5(3)(c)

F69 Words in s. 273(3) substituted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 5(4)(a)

F70 Words in s. 273(3) substituted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 5(4)(b)

F71 Word in s. 273(4) substituted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 5(5)

F72 S. 273(5)-(7) inserted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 5(6)

Penalties U.K.

274 Penalties U.K.

Schedule 35 contains provision about penalties for failure to comply with provisions of this Part.

275 Failure to comply with Part 7 of the Finance Act 2004 U.K.

In section 98C of TMA 1970 (notification under Part 7 of FA 2004), after subsection (2E) insert—

“(2EA) Where a person fails to comply with—

(a) section 309 of that Act and the promoter for the purposes of that section is a monitored promoter for the purposes of Part 5 of the Finance Act 2014, or

(b) section 310 of that Act and the arrangements for the purposes of that section are arrangements of such a monitored promoter,

then for the purposes of section 118(2) of this Act legal advice which the person took into account is to be disregarded in determining whether the person had a reasonable excuse, if the advice was given or procured by that monitored promoter.

(2EB) In determining for the purpose of section 118(2) of this Act whether or not a person who is a monitored promoter within the meaning of Part 5 of the Finance Act 2014 had a reasonable excuse for a failure to do anything required to be done under a provision mentioned in subsection (2), reliance on legal advice is to be taken automatically not to constitute a reasonable excuse if either—

(a) the advice was not based on a full and accurate description of the facts, or

(b) the conclusions in the advice that the person relied on were unreasonable.”

F73 276 Limitation of defence of reasonable care U.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F73 S. 276 omitted (with effect in accordance with s. 64(5)(6) of the amending Act) by virtue of Finance (No. 2) Act 2017 (c. 32), s. 64(4)

277 Extended time limit for assessment U.K.

(1) In section 36 of TMA 1970 (loss of tax brought about carelessly or deliberately), in subsection (1A)—

(a) omit the “or” following paragraph (b), and

(b) at the end of paragraph (c) insert “or

(d) attributable to arrangements which were expected to give rise to a tax advantage in respect of which the person was under an obligation to notify the Commissioners for Her Majesty's Revenue and Customs under section 253 of the Finance Act 2014 (duty to notify Commissioners of promoter reference number) but failed to do so,”.

(2) In paragraph 12B of Schedule 2 to OTA 1975 (extended time limits for assessment of petroleum revenue tax)—

(a) in sub-paragraph (1), after “sub-paragraph (2)” insert “ and (2A) ”,

(b) after sub-paragraph (2) insert—

“(2A) In a case involving a relevant situation brought about by arrangements which were expected to give rise to a tax advantage in respect of which a participator (or a person acting on behalf of a participator) was under an obligation to notify the Board under section 253 of the Finance Act 2014 (duty to notify Commissioners of promoter reference number) but failed to do so, an assessment (or an amendment of an assessment) on the participator may be made at any time not more than 20 years after the end of the relevant chargeable period.”,

(c) in sub-paragraph (5), for “or (2)” substitute “ , (2) or (2A) ”, and

(d) in sub-paragraph (6), for “or (2)” substitute “ , (2) or (2A) ”.

(3) In section 240 of IHTA 1984 (underpayments)—

(a) in subsection (3) for “and (5)” substitute “ to (5A) ”,

(b) in subsection (5), for “those dates” substitute “ the dates in subsection (2)(a) and (b) ”,

(c) after subsection (5) insert—

“(5A) Proceedings in a case involving a loss of tax attributable to arrangements which were expected to give rise to a tax advantage in respect of which a person liable for the tax was under an obligation to make a report under section 253 of the Finance Act 2014 (duty to notify Commissioners of promoter reference number) but failed to do so, may be brought at any time not more than 20 years after the later of the dates in subsection (2)(a) and (b).”, and

(d) in subsection (8), for “, (5) and (6)” substitute “ to (6) ”.

(4) In paragraph 46 of Schedule 18 to FA 1998 (general time limits for assessments to corporation tax), in sub-paragraph (2A)—

(a) omit the “or” following paragraph (b), and

(b) at the end of paragraph (c) insert “or

(d) attributable to arrangements which were expected to give rise to a tax advantage in respect of which the company was under an obligation to notify the Commissioners for Her Majesty's Revenue and Customs under section 253 of the Finance Act 2014 (duty to notify Commissioners of promoter reference number) but failed to do so,”.

(5) In paragraph 31 of Schedule 10 to FA 2003 (time limit for assessment of stamp duty land tax), in sub-paragraph (2A)—

(a) omit the “or” following paragraph (b), and

(b) at the end of paragraph (c) insert “or

(d) attributable to arrangements which were expected to give rise to a tax advantage in respect of which the person was under an obligation to notify the Commissioners for Her Majesty's Revenue and Customs under section 253 of the Finance Act 2014 (duty to notify Commissioners of promoter reference number) but failed to do so,”.

(6) In paragraph 25 of Schedule 33 to FA 2013 (time limit for assessment: annual tax on enveloped dwellings), in sub-paragraph (4)—

(a) omit the “or” following paragraph (b), and

(b) at the end of paragraph (c) insert “, or

(d) attributable to arrangements which were expected to give rise to a tax advantage in respect of which the person was under an obligation to notify the Commissioners for Her Majesty's Revenue and Customs under section 253 of FA 2014 (duty to notify Commissioners of promoter reference number) but failed to do so.”

Offences U.K.

[F74 277A Offences relating to stop notices U.K.

(1) A person who, without reasonable excuse, fails to comply with a duty imposed under section 236B(1) is guilty of an offence.

(2) The recipient of a stop notice (“R”) is guilty of an offence if—

(a) R fails, without reasonable excuse, to comply with a duty imposed under section 236B(3)(a), (4)(a) or (5)(a) to give a copy of the notice to another person (“P”),

(b) P subsequently fails to comply with a duty imposed under section 236B(1) in relation to the notice, and

(c) at the time of P’s failure the stop notice continues to have effect in relation to R.

(3) For the purposes of this section—

(a) an insufficiency of funds is not a reasonable excuse unless attributable to events outside the person's control,

(b) if the person relies on any other person to do anything, that is not a reasonable excuse unless the first person took reasonable care to avoid the failure,

(c) if the person had a reasonable excuse for the failure but the excuse has ceased, the person is to be treated as having continued to have the excuse if the failure is remedied without unreasonable delay after the excuse ceased, and

(d) reliance on legal advice is to be taken automatically not to constitute a reasonable excuse where the person is a monitored promoter if either—

(i) the advice was not based on a full and accurate description of the facts, or

(ii) the conclusions in the advice that the person relied on were unreasonable.]

Textual Amendments

F74 Ss. 227A, 227B inserted (22.2.2024) by Finance Act 2024 (c. 3), s. 34(1) (with s. 34(3)(4))

[F74 277B Liability for offences under section 277A committed by a body U.K.

(1) If an offence under section 277A is committed by a body corporate or a partnership and—

(a) is committed with the consent or connivance of a relevant person in relation to the body or partnership, or

(b) is attributable to neglect on the part of such a person,

the person (as well as the body or partnership) commits the offence and is liable to be proceeded against and punished accordingly.

(2) A “relevant person” is—

(a) in relation to a body corporate other than one whose affairs are managed by its members—

(i) a director, manager, secretary or other similar officer of the body, or a person purporting to act in such a capacity, or

(ii) a shadow director within the meaning of section 251 of the Companies Act 2006;

(b) in relation to a limited liability partnership or other body corporate whose affairs are managed by its members—

(i) a member who exercises functions of management with respect to it, or a person purporting to act in such a capacity, or

(ii) in the case of a limited liability partnership, a shadow member within the meaning of regulation 2 of the Limited Liability Partnerships Regulations 2001 (S.I. 2001/1090);

(c) in relation to a partnership, a partner or a person purporting to act in such a capacity.]

Textual Amendments

F74 Ss. 227A, 227B inserted (22.2.2024) by Finance Act 2024 (c. 3), s. 34(1) (with s. 34(3)(4))

278 Offence of concealing etc documents U.K.

(1) A person is guilty of an offence if—

(a) the person is required to produce a document by a notice given under section 255,

(b) the tribunal approved the giving of the notice under section 256, and

(c) the person conceals, destroys or otherwise disposes of, or arranges for the concealment, destruction or disposal of, that document.

(2) Subsection (1) does not apply if the person acts after the document has been produced to an officer of Revenue and Customs in accordance with section 255, unless the officer has notified the person in writing that the document must continue to be available for inspection (and has not withdrawn the notification).

(3) Subsection (1) does not apply, in a case to which section 268(1) applies, if the person acts after the end of the expiry of 6 months beginning with the day on which a copy of the document was produced in accordance with that section unless, before the expiry of that period, an officer of Revenue and Customs makes a request for the original document under section 268(2)(b).

279 Offence of concealing etc documents following informal notification U.K.

(1) A person is guilty of an offence if the person conceals, destroys or otherwise disposes of, or arranges for the concealment, destruction or disposal of, a document after an officer of Revenue and Customs has informed the person in writing that—

(a) the document is, or is likely, to be the subject of a notice under section 255, and

(b) the officer of Revenue and Customs intends to seek the approval of the tribunal to the giving of the notice.

(2) A person is not guilty of an offence under this section if the person acts after—

(a) at least 6 months has expired since the person was, or was last, informed as described in subsection (1), or

(b) a notice has been given to the person under section 255, requiring the document to be produced.

280 Penalties for offences U.K.

(1) A person who is guilty of an offence under section [F75 277A,] 278 or 279 is liable—

(a) on summary conviction, to—

(i) in England and Wales, a fine, or

(ii) in Scotland or Northern Ireland, a fine not exceeding the statutory maximum, or

(b) on conviction on indictment, to imprisonment for a term not exceeding 2 years or to a fine or both.

(2) In relation to an offence committed before section 85(1) of the Legal Aid, Sentencing and Punishment of Offenders Act 2012 comes into force, subsection (1)(a)(i) has effect as if the reference to “a fine” were a reference to “a fine not exceeding the statutory maximum”.

Textual Amendments

F75 Word in s. 280(1) inserted (22.2.2024) by Finance Act 2024 (c. 3), s. 34(2)

Supplemental U.K.

281 Partnerships U.K.

Schedule 36 contains provision about the application of this Part to partnerships.

[F76 281A VAT [F77 and other indirect taxes] U.K.

(1) In the provisions mentioned in subsection (2)—

(a) “tax” includes value added tax [F78 and other indirect taxes], and

(b) “tax advantage” has the meaning given by section 234(3) and also includes a tax advantage as defined [F79 for VAT in paragraph 6, and for other indirect taxes in paragraph 7, of Schedule 17 to FA 2017 (disclosure of tax avoidance schemes: VAT and other indirect taxes).]

(2) Those provisions are—

(a) section 237D;

(b) section 241B;

(c) Schedule 34A.

(3) Other references in this Part to “tax” are to be read as including value added tax [F80 or other indirect taxes] so far as that is necessary for the purposes of sections 237A to 237D, 241A and 241B and Schedule 34A; but “tax” does not include value added tax [F80 or other indirect taxes] in section 237A(10) or 237B(3).

[F81 (4) In this section “indirect tax” has the same meaning as in Schedule 17 to FA 2017.]]

Textual Amendments

F76 S. 281A inserted (15.9.2016) by Finance Act 2016 (c. 24), s. 160(7)

F77 Words in s. 281A heading inserted (16.11.2017 for specified purposes, 1.1.2018 in so far as not already in force) by Finance (No. 2) Act 2017 (c. 32), s. 66(4), Sch. 17 para. 53(2)

F78 Words in s. 281A(1)(a) inserted (16.11.2017 for specified purposes, 1.1.2018 in so far as not already in force) by Finance (No. 2) Act 2017 (c. 32), s. 66(4), Sch. 17 para. 53(3)(a)

F79 Words in s. 281A(1)(b) substituted (16.11.2017 for specified purposes, 1.1.2018 in so far as not already in force) by Finance (No. 2) Act 2017 (c. 32), s. 66(4), Sch. 17 para. 53(3)(b)

F80 Words in s. 281A(3) inserted (16.11.2017 for specified purposes, 1.1.2018 in so far as not already in force) by Finance (No. 2) Act 2017 (c. 32), s. 66(4), Sch. 17 para. 53(4)

F81 S. 281A(4) inserted (16.11.2017 for specified purposes, 1.1.2018 in so far as not already in force) by Finance (No. 2) Act 2017 (c. 32), s. 66(4), Sch. 17 para. 53(5)

282 Regulations under this Part U.K.

(1) Regulations under this Part are to be made by statutory instrument.

(2) Apart from an instrument to which subsection (3) applies, a statutory instrument containing regulations made under this Part is subject to annulment in pursuance of a resolution of the House of Commons.

(3) A statutory instrument containing (whether alone or with other provision) regulations made under—

(a) section 238(7),

(b) paragraph 14 of Schedule 34,

[F82 (ba) paragraph 31 of Schedule 34A,]

(c) paragraph 5(1) of Schedule 35, or

(d) paragraph 21 of Schedule 36,

may not be made unless a draft of the instrument has been laid before and approved by a resolution of the House of Commons.

(4) Regulations under this Part—

(a) may make different provision for different purposes;

(b) may include transitional provision and savings.

Textual Amendments

F82 S. 282(3)(ba) inserted (15.9.2016) by Finance Act 2016 (c. 24), s. 160(8)

283 Interpretation of this Part U.K.

(1) In this Part—

• “arrangements” has the meaning given by section 234(4);

• “the Commissioners” means the Commissioners for Her Majesty's Revenue and Customs;

• “calendar quarter” means a period of 3 months beginning with 1 January, 1 April, 1 July or 1 October;

• “conduct notice” means a notice of the description in section 238 that is given under—

  (a)

  section 237(7) [F83 or (7A)],

  (aa)

  [F84 section 237A(8),

  (ab)

  section 237B(1),]

  (b)

  section 245(7), or

  (c)

  paragraph 8(2) or (3) or 10(3)(a) or (4)(a) of Schedule 36;

• [F85 “contract settlement” means an agreement in connection with a person's liability to make a payment to the Commissioners under or by virtue of an enactment;]

• [F85 “defeat” , in relation to arrangements, has the meaning given by paragraph 10 of Schedule 34A;]

• [F85 “defeat notice” has the meaning given by section 241A(7);]

• [F85 “double defeat notice” has the meaning given by section 241A(7);]

• [F85 “final” , in relation to a judicial ruling, is to be interpreted in accordance with section 237D(6);]

• “HMRC” means Her Majesty's Revenue and Customs;

• “firm approach” has the meaning given by section 235(4);

• [F85 “judicial ruling” means a ruling of a court or tribunal on one or more issues;]

• [F85 “look-forward period”, in relation to a defeat notice, has the meaning given by section 241A(10);]

• “monitored promoter” has the meaning given by section 244(5);

• “monitored proposal” and “monitored arrangements” have the meaning given by section 254;

• “monitoring notice” means a notice given under section 244(1) or paragraph 9(2) or (3) or 10(3)(b) or (4)(b) of Schedule 36;

• “the original monitoring notice” has the meaning given by paragraph 11(2) of Schedule 36;

• “prescribed” means prescribed, or of a description prescribed, in regulations made by the Commissioners;

• “promoter reference number” has the meaning given by section 250(5);

• [F86 “promotion structure” is to be construed in accordance with section 235(1A) and Schedule 33A;]

• [F85 “provisional” , in relation to a conduct notice given under section 237A(8), is to be interpreted in accordance with section 237C;]

• [F85 “related” , in relation to arrangements, is to be interpreted in accordance with paragraph 2 of Schedule 34A;]

• “relevant arrangements” has the meaning given by section 234(2);

• [F85 “relevant defeat” , in relation to a person, is to be interpreted in accordance with Schedule 34A;]

• “relevant proposal” has the meaning given by section 234(1);

• [F85 “relies on a Case 3 relevant defeat” is to be interpreted in accordance section 237B(5);]

• “replacement conduct notice” has the meaning given by paragraph 11(1) of Schedule 36;

• “replacement monitoring notice” has the meaning given by paragraph 11(1) of Schedule 36;

• [F85 “single defeat notice” has the meaning given by section 241A(7).]

• [F87 “stop notice” means a notice given under section 236A(1);

• “subject to a stop notice” , in relation to a person, is to be construed in accordance with section 236B(2);]

• “tax” [F88 (except in provisions to which section 281A applies)] means—

  (a)

  income tax,

  (b)

  capital gains tax,

  (c)

  corporation tax,

  (d)

  petroleum revenue tax,

  (da)

  [F89 apprenticeship levy,]

  (e)

  inheritance tax,

  (f)

  stamp duty land tax,

  (g)

  stamp duty reserve tax, or

  (h)

  annual tax on enveloped dwellings;

• “tax advantage” has the meaning given by section 234(3) [F90 (but see also section 281A)];

• “Taxes Acts” has the same meaning as in TMA 1970 (see section 118(1) of that Act);

• “the tribunal” means the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal.

(2) A reference in a provision of this Part to an authorised officer is to an officer of Revenue and Customs who is, or is a member of a class of officers who are, authorised by the Commissioners for the purposes of that provision.

(3) A reference in a provision of this Part to meeting a threshold condition is to meeting one of the conditions described in paragraphs 2 to 12 of Schedule 34.

[F91 (4) Any reference in this Part to a person's activities as a promoter includes—

(a) if the person falls within the case described in paragraph 2 of Schedule 33A, the activities carried out by the person and other persons by virtue of which the person falls within the case,

(b) if the person falls within the case described in paragraph 3 of that Schedule, activities carried out under the instruction or guidance of a person who carries on business as a promoter,

(c) if the person falls within the case described in paragraph 4 of that Schedule, the activities of the body corporate or partnership that the person controls, and

(d) if the person falls within the case described in paragraph 5 by virtue of sub-paragraph (1)(b) of that paragraph, the activities of the body corporate or partnership that the person controls.]

Textual Amendments

F83 Words in s. 283 inserted (with effect in accordance with Sch. 19 para. 9 of the amending Act) by Finance Act 2015 (c. 11), Sch. 19 para. 3

F84 Words in s. 283(1) inserted (15.9.2016) by Finance Act 2016 (c. 24), s. 160(9)(a)

F85 Words in s. 283(1) inserted (15.9.2016) by Finance Act 2016 (c. 24), s. 160(9)(d)

F86 Words in s. 283(1) inserted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 18(a)

F87 Words in s. 283(1) inserted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 6

F88 Words in s. 283(1) inserted (15.9.2016) by Finance Act 2016 (c. 24), s. 160(9)(b)

F89 Words in s. 283(1) inserted (15.9.2016) by Finance Act 2016 (c. 24), s. 104(8) (with s. 117)

F90 Words in s. 283(1) inserted (15.9.2016) by Finance Act 2016 (c. 24), s. 160(9)(c)

F91 S. 283(4) inserted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 18(b)