The Promoters of Tax Avoidance Schemes (Prescribed Circumstances under Section 235) Regulations 2015

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations prescribe circumstances in which a person is not to be treated as a promoter in relation to tax avoidance schemes for the purposes of Part 5 of the Finance Act 2014 (the “2014 Act”).

Regulation 2 prescribes circumstances in which a company is not to be a promoter. The circumstances prescribed are those in which the promoter and the company to whom services relating to tax avoidance schemes are provided are members of the same group (on the condition that the promoter has not within the last three years provided that kind of services to a person who is not a group company). However, if the company goes on to provide services outside of a group then this exclusion will be deemed not to have applied for the previous three years. A promoter subject to a conduct notice or a monitoring notice (see the respective definitions at section 283(1) of the 2014 Act) cannot rely on the exemption in regulation 2.

Regulation 3 prescribes the circumstances in which a person to some extent responsible for the design of proposed arrangements or arrangements is not to be a promoter despite section 235(2)(a) or (3)(b).

Regulations 2 and 3 have retrospective effect from 17th July 2014 (the date of royal assent of the 2014 Act). Power to make legislation with retrospective effect is contained in section 235(7).

A Tax Information and Impact Note covering this instrument was published on 17th July 2014 and is available on the HMRC website at https://www.gov.uk/government/publications/promoters-of-tax-avoidance-schemes. It remains an accurate summary of the impacts that apply to this instrument.