Part 7Disclosure of tax avoidance schemes

307Meaning of “promoter”

(1)

For the purposes of this Part a person is a promoter—

(a)

in relation to a notifiable proposal, if, in the course of a relevant F1business, the person (“P”)—

(i)

is to any extent responsible for the design of the proposed arrangements,

(ii)

makes a firm approach to another person (“C”) in relation to the notifiable proposal with a view to P making the notifiable proposal available for implementation by C or any other person, or

(iii)

makes the notifiable proposal available for implementation by other persons, and

(b)

in relation to notifiable arrangements, if he is by virtue of paragraph (a)(ii) F2or (iii) a promoter in relation to a notifiable proposal which is implemented by those arrangements or if, in the course of a relevant business, he is to any extent responsible for—

(i)

the design of the arrangements, or

(ii)

the organisation or management of the arrangements.

F3(1A)

For the purposes of this Part a person is an introducer in relation to a notifiable proposal if the person makes a marketing contact with another person in relation to the notifiable proposal.

(2)

In this section “relevant business” means any trade, profession or business which—

(a)

involves the provision to other persons of services relating to taxation, or

(b)

is carried on by a bank, as defined by F4section 1120 of the Corporation Tax Act 2010 , or by a securities house, as defined by F5section 1009(3) of that Act.

(3)

For the purposes of this section anything done by a company is to be taken to be done in the course of a relevant business if it is done for the purposes of a relevant business falling within subsection (2)(b) carried on by another company which is a member of the same group.

(4)

Section 170 of the Taxation of Chargeable Gains Act 1992 (c. 12) has effect for determining for the purposes of subsection (3) whether two companies are members of the same group, but as if in that section—

(a)

for each of the references to a 75 per cent subsidiary there were substituted a reference to a 51 per cent subsidiary, and

(b)

subsection (3)(b) and subsections (6) to (8) were omitted.

F6(4A)

For the purposes of this Part a person makes a firm approach to another person in relation to a F7... proposal if the person makes a marketing contact with the other person in relation to the F7... proposal at a time when the proposed arrangements have been substantially designed.

(4B)

For the purposes of this Part a person makes a marketing contact with another person in relation to a notifiable proposal if—

(a)

the person communicates information about the notifiable proposal to the other person,

(b)

the communication is made with a view to that other person, or any other person, entering into transactions forming part of the proposed arrangements, and

(c)

the information communicated includes an explanation of the advantage in relation to any tax that might be expected to be obtained from the proposed arrangements.

(4C)

For the purposes of subsection (4A) proposed arrangements have been substantially designed at any time if by that time the nature of the transactions to form part of them has been sufficiently developed for it to be reasonable to believe that a person who wished to obtain the advantage mentioned in subsection (4B)(c) might enter into—

(a)

transactions of the nature developed, or

(b)

transactions not substantially different from transactions of that nature.

(5)

A person is not to be treated as a promoter F8or introducer for the purposes of this Part by reason of anything done in prescribed circumstances.

F9(6)

In the application of this Part to a proposal or arrangements which are not notifiable, a reference to a promoter F10or introducer is a reference to a person who would be a promoter F10or introducer under subsections (1) to (5) if the proposal or arrangements were notifiable.