HMRC has released a summary of the responses to its consultation on the introduction of new sanctions for people who use tax avoidance structures. Proposed new rules would introduce escalating sanctions for those using arrangements which are found not to work and set “warning periods”.

It now seems inevitable that draft legislation will be introduced to implement these proposals. The new regime is likely to be complex and require careful consideration, in particular, the definition of what is “tax avoidance” is very wide.

The consultation responses can be read here.