As announced in the Budget 2016 and following consultation, legislation will be introduced in the Finance Bill 2017 to strengthen the regime for the disclosure of avoidance of indirect tax. Provision is to be made to make scheme promoters primarily responsible for disclosing schemes to HMRC and the scope of the scheme will be extended to indirect taxes from 1 September 2017.

Following Royal Assent of the Finance Bill 2017 a new fixed rate penalty of 30% will be applied to businesses and company officers when they knew or should have known that their transactions were concerned with VAT fraud. This new penalty regime is aimed at Missing Trader VAT fraud.

Following consultation, the government will introduce a new penalty for any person who has enabled another person or business to use tax avoidance arrangement which is later defeated in court by HMRC. Draft legislation is expected.