SCHEDULES

SCHEDULE 18Serial tax avoidance

PART 2Entry into the regime and basic concepts

2Duty to give warning notice

1

This paragraph applies where a person incurs a relevant defeat in relation to any arrangements.

2

HMRC must give the person a written notice (a “warning notice”).

3

The notice must be given within the period of 90 days beginning with the day on which the relevant defeat is incurred.

4

The notice must—

a

set out when the warning period begins and ends (see paragraph 3),

b

specify the relevant defeat to which the notice relates, and

c

explain the effect of paragraphs 3 and 17 to 46.

5

A warning notice given by virtue of paragraph 49 must also explain the effect of paragraph 51 (information in certain cases involving partnerships).

6

In this Schedule “arrangements” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).

7

For the meaning of “relevant defeat” and provision about when a relevant defeat is incurred see paragraph 11.