Company Directors Disqualification Act 1986

[F1 8ZG Disqualification on finding of unfitness: promoters of tax avoidance U.K.

(1) The court may make a disqualification order against a person if, on an application under this section, it is satisfied—

(a) that the person—

(i) is a director of a company that carries on business as a promoter within the meaning of Part 5 of the Finance Act 2014 (promoters of tax avoidance schemes), or

(ii) after the coming into force of this section, was a director of a company at a time at which it did so, and

(b) that the person’s conduct in relation to the company (either taken alone or taken together with the person’s conduct as a director of one or more other companies) makes the person unfit to be concerned in the management of a company.

(2) For the purposes of subsection (1)(a)(i), Part 5 of the Finance Act 2014 has effect as if, in section 234 of that Act—

(a) references to “tax” included value added tax and other indirect taxes, and

(b) the definition of “tax advantage” also included a tax advantage as defined for VAT in paragraph 6, and for other indirect taxes in paragraph 7, of Schedule 17 to the Finance (No. 2) Act 2017 (disclosure of tax avoidance schemes: VAT and other indirect taxes).

(3) References in subsection (1)(b) to a person’s conduct include conduct occurring before, as well as after, the coming into force of this section.

(4) An officer of Revenue and Customs may make an application to the court for a disqualification order against a person under this section if it appears to the officer that it is expedient in the public interest for such an order to be made.

(5) The maximum period of disqualification under this section is 15 years.

(6) An officer of Revenue and Customs may accept a disqualification undertaking if it appears to the officer—

(a) that the conditions mentioned in subsection (1) are satisfied in relation to the person who has offered to give the disqualification undertaking, and

(b) that it is expedient in the public interest that the officer should accept the undertaking (instead of applying, or proceeding with an application, for a disqualification order).

(7) In this section—

• “company” includes overseas company;

• “the court” means—

  (a)

  in England and Wales, the High Court;

  (b)

  in Scotland, the Court of Session;

  (c)

  in Northern Ireland, the High Court in Northern Ireland;

• “director” includes a shadow director;

• “indirect tax” has the same meaning as in Schedule 17 to the Finance (No. 2) Act 2017 (see paragraph 2(1) of that Schedule).]

Textual Amendments

F1 Ss. 8ZF, 8ZG and cross-heading inserted (22.2.2024) by Finance Act 2024 (c. 3), Sch. 13 para. 1