HMRC has released new Guidance on the disclosure of tax avoidance schemes (DOTAS) and promoters of tax avoidance schemes (POTAS), regimes.
The new, revised, Guidance explains changes to the regimes since 2014.
In relation to the issue of Conduct Notices, whereas previously the Guidance confirmed that HMRC would meet with a promoter who it considered had met a “threshold condition” before deciding whether to issue that notice. In the updated version, this section is omitted, suggesting that HMRC no longer feels the need to consult with a promoter before exercising its discretion to issue a notice.
HMRC may be seeking to broaden the scope of the POTAS regime as the Guidance states that HMRC may consider as significant what would otherwise be non-significant breaches of threshold conditions if it is of the view that multiple non-significant breaches are part of a “pattern”.
Any promoters subject to Conduct Notices, or threatened Conduct Notices, should seek legal advice as a matter of urgency.