HMRC has issued detailed guidance in relation to the Serial Tax Avoidance legislation that came into effect on 15 September 2016. The regime applies to taxpayers who have used an avoidance scheme which has been defeated by HMRC under any of the various legislative regimes, such as the General Anti Abuse Regime (GAAR) or the Disclosure of Tax Avoidance Schemes (DOTAS) regime. The sanctions available to HMRC include the issuing of warning notices (which require taxpayers to submit information notices about DOTAS arrangements that they have used during a fixed period of time), various tax-geared penalties if they are party to avoidance arrangements that are defeated and, in certain circumstances, the public naming of tax avoiders.

The guidance issued by HMRC includes a number of examples which help to illustrate how the legislation will be applied. In particular, there are a number of examples covering the aggregation of penalties and how the valuation of any counteracted advantage should be calculated.