On 30 April 2018, HMRC published Guidance that seeks to explain what makes an individual an enabler of tax avoidance under paragraph 7, Schedule 16, Finance (No 2) Act 2017. The Guidance also explains how information which is subject to legal privilege should be dealt with.

The legislation defines a person who has enabled abusive tax arrangements as a person who:

• is a designer of the arrangements

• is a manager of the arrangements

• marketed the arrangements

• is an enabling participant in the arrangements

• is a financial enabler in relation to the arrangements.

Each has to be considered in turn and it is only necessary for a person to satisfy one of the above definitions in order to be subject to a penalty.

A copy of the Guidance can be viewed here.