Finance (No. 2) Act 2017

PART 1 U.K. Duties to disclose avoidance schemes etc

Preliminary: application of definitions U.K.

1 U.K. The definitions in paragraphs 2, 3, and 7 to 10 apply for the purposes of this Schedule.

Commencement Information

I1 Sch. 17 para. 1 in force at Royal Assent for specified purposes and at 1.1.2018 otherwise, see s. 66(4)

“Indirect tax” U.K.

2 (1) “Indirect tax” means any of the following— U.K.

• VAT

• insurance premium tax

• general betting duty

• pool betting duty

• remote gaming duty

• machine games duty

• gaming duty

• lottery duty

• bingo duty

• air passenger duty

• hydrocarbon oils duty

• tobacco products duty

• duties on spirits, beer, wine, made-wine and cider

• soft drinks industry levy

• aggregates levy

• landfill tax

• [F1 plastic packaging tax]

• climate change levy

• customs duties.

(2) The Treasury may by regulations amend the list in sub-paragraph (1) by adding, varying or omitting an entry for a tax.

Textual Amendments

F1 Words in Sch. 17 para. 2(1) inserted (10.12.2021 for specified purposes and with effect in accordance with s. 85(1)(b) of the amending Act) by Finance Act 2021 (c. 26), s. 85(1)(a), Sch. 15 para. 7; S.I. 2021/1409, reg. 3

Commencement Information

I2 Sch. 17 para. 2 in force at Royal Assent for specified purposes and at 1.1.2018 otherwise, see s. 66(4)

“Notifiable arrangements” and “notifiable proposal” U.K.

3 (1) “Notifiable arrangements” means any arrangements not excluded by sub-paragraph (2) which— U.K.

(a) fall within any description prescribed by the Treasury by regulations,

(b) enable, or might be expected to enable, any person to obtain a tax advantage in relation to any indirect tax that is so prescribed in relation to arrangements of that description, and

(c) are such that the main benefit, or one of the main benefits, that might be expected to arise from the arrangements is the obtaining of that tax advantage.

(2) Arrangements that meet the requirements in paragraphs (a) to (c) of sub-paragraph (1) are not notifiable arrangements if they implement a proposal which is excluded from being a notifiable proposal by sub-paragraph (4).

(3) “Notifiable proposal” means a proposal for arrangements which, if entered into, would be notifiable arrangements (whether the proposal relates to a particular person or to any person who may seek to take advantage of it).

(4) A proposal is not a notifiable proposal if any of the following occur before 1 January 2018—

(a) a promoter first makes a firm approach to another person in relation to the proposal,

(b) a promoter makes the proposal available for implementation by any other person, or

(c) a promoter first becomes aware of any transaction forming part of arrangements implementing the proposal.

Commencement Information

I3 Sch. 17 para. 3 in force at Royal Assent for specified purposes and at 1.1.2018 otherwise, see s. 66(4)

4 (1) HMRC may apply to the tribunal for an order that— U.K.

(a) a proposal is notifiable, or

(b) arrangements are notifiable.

(2) An application must specify—

(a) the proposal or arrangements in respect of which the order is sought, and

(b) the promoter.

(3) On an application the tribunal may make the order only if satisfied that paragraph 3(1)(a) to (c) applies to the relevant arrangements and that they are not excluded from being notifiable by paragraph 3(2).

Commencement Information

I4 Sch. 17 para. 4 in force at Royal Assent for specified purposes and at 1.1.2018 otherwise, see s. 66(4)

5 (1) HMRC may apply to the tribunal for an order that— U.K.

(a) a proposal is to be treated as notifiable, or

(b) arrangements are to be treated as notifiable.

(2) An application must specify—

(a) the proposal or arrangements in respect of which the order is sought, and

(b) the promoter.

(3) On an application the tribunal may make the order only if satisfied that HMRC—

(a) have taken all reasonable steps to establish whether the proposal or arrangements are notifiable, and

(b) have reasonable grounds for suspecting that the proposal or arrangements may be notifiable.

(4) Reasonable steps under sub-paragraph (3)(a) may (but need not) include taking action under paragraph 29 or 30.

(5) Grounds for suspicion under sub-paragraph (3)(b) may include—

(a) the fact that the relevant arrangements fall within a description prescribed under paragraph 3(1)(a),

(b) an attempt by the promoter to avoid or delay providing information or documents about the proposal or arrangements under or by virtue of paragraph 29 or 30,

(c) the promoter's failure to comply with a requirement under or by virtue of paragraph 29 or 30 in relation to another proposal or other arrangements.

(6) Where an order is made under this paragraph in respect of a proposal or arrangements, the relevant period for the purposes of sub-paragraph (1) of paragraph 11 or 12 in so far as it applies by virtue of the order is the period of 11 days beginning with the day on which the order is made.

(7) An order under this paragraph in relation to a proposal or arrangements is without prejudice to the possible application of any of paragraphs 11 to 15, other than by virtue of this paragraph, to the proposal or arrangements.

Commencement Information

I5 Sch. 17 para. 5 in force at Royal Assent for specified purposes and at 1.1.2018 otherwise, see s. 66(4)

“Tax advantage” in relation to VAT U.K.

6 (1) A person (P) obtains a tax advantage in relation to VAT if— U.K.

(a) in any prescribed accounting period, the amount by which the output tax accounted for by P exceeds the input tax deducted by P is less than it would otherwise be;

(b) P obtains a VAT credit when P would otherwise not do so, or obtains a larger credit or obtains a credit earlier than would otherwise be the case;

(c) in a case where P recovers input tax as a recipient of a supply before the supplier accounts for the output tax, the period between the time when the input tax is recovered and the time when the output tax is accounted for is greater than would otherwise be the case;

(d) in any prescribed accounting period, the amount of P's non-deductible tax is less than it otherwise would be;

(e) P avoids an obligation to account for tax.

(2) In sub-paragraph (1)(d) “non-deductible tax”, in relation to a taxable person, means—

(a) input tax for which the person is not entitled to credit under section 25 of VATA 1994,

(b) any VAT incurred by the person which is not input tax and in respect of which the person is not entitled to a refund from the Commissioners by virtue of any provision of VATA 1994.

(3) For the purposes of sub-paragraph (2)(b), the VAT “incurred” by a taxable person is—

(a) VAT on the supply to the person of any goods or services,

F2 (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c) VAT paid or payable by the person on the importation of any goods F3 ....

(4) A person who is not a taxable person obtains a tax advantage in relation to VAT if that person's non-refundable tax is less that it otherwise would be.

(5) In sub-paragraph (4) “non-refundable tax” means—

(a) VAT on the supply to the person of any goods or services,

F4 (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c) VAT paid or payable by the person on the importation of any goods F5 ...,

but excluding (in each case) any VAT in respect of which the person is entitled to a refund from the Commissioners by virtue of any provision of VATA 1994.

(6) Terms used in this paragraph which are defined in section 96 of VATA 1994 have the meanings given by that section.

Textual Amendments

F2 Sch. 17 para. 6(3)(b) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 131(a)(i) (with savings and transitional provisions in S.I. 2019/105 (as amended by S.I. 2020/1495, regs. 1(2), 21), S.I. 2020/1545, Pt. 4 and 2020 c. 26, Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)

F3 Words in Sch. 17 para. 6(3)(c) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 131(a)(ii) (with savings and transitional provisions in S.I. 2019/105 (as amended by S.I. 2020/1495, regs. 1(2), 21), S.I. 2020/1545, Pt. 4 and 2020 c. 26, Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)

F4 Sch. 17 para. 6(5)(b) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 131(b)(i) (with savings and transitional provisions in S.I. 2019/105 (as amended by S.I. 2020/1495, regs. 1(2), 21), S.I. 2020/1545, Pt. 4 and 2020 c. 26, Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)

F5 Words in Sch. 17 para. 6(5)(c) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 131(b)(ii) (with savings and transitional provisions in S.I. 2019/105 (as amended by S.I. 2020/1495, regs. 1(2), 21), S.I. 2020/1545, Pt. 4 and 2020 c. 26, Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)

Commencement Information

I6 Sch. 17 para. 6 in force at Royal Assent for specified purposes and at 1.1.2018 otherwise, see s. 66(4)

“Tax advantage” in relation to taxes other than VAT U.K.

7 U.K. “Tax advantage”, in relation to an indirect tax other than VAT, means—

(a) relief or increased relief from tax,

(b) repayment or increased repayment of tax,

(c) avoidance or reduction of a charge to tax, an assessment of tax or a liability to pay tax,

(d) avoidance of a possible assessment to tax or liability to pay tax,

(e) deferral of a payment of tax or advancement of a repayment of tax, or

(f) avoidance of an obligation to deduct or account for tax.

Commencement Information

I7 Sch. 17 para. 7 in force at Royal Assent for specified purposes and at 1.1.2018 otherwise, see s. 66(4)

“Promoter” U.K.

8 (1) This paragraph describes when a person (P) is a promoter in relation to a notifiable proposal or notifiable arrangements. U.K.

(2) P is a promoter in relation to a notifiable proposal if, in the course of a relevant business, P—

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

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

(c) makes the proposal available for implementation by other persons.

(3) P is a promoter in relation to notifiable arrangements if—

(a) P is by virtue of sub-paragraph (2)(b) or (c) a promoter in relation to a notifiable proposal which is implemented by the arrangements, or

(b) if in the course of a relevant business, P is to any extent responsible for—

(i) the design of the arrangements, or

(ii) the organisation or management of the arrangements.

(4) In this paragraph “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 or securities house.

(5) In sub-paragraph (4)(b)—

• “bank” has the meaning given by section 1120 of CTA 2010, and

• “securities house” has the meaning given by section 1009(3) of that Act.

(6) For the purposes of this paragraph 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 sub-paragraph (4)(b) carried on by another company which is a member of the same group.

(7) Section 170 of the TCGA 1992 has effect for determining for the purposes of sub-paragraph (6) 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.

(8) A person is not to be treated as a promoter by reason of anything done in prescribed circumstances.

(9) In the application of this Schedule to a proposal or arrangements which are not notifiable, a reference to a promoter is a reference to a person who would be a promoter under this paragraph if the proposal or arrangements were notifiable.

Modifications etc. (not altering text)

C1 Sch. 17 para. 8(2)(a)(3)(a) restricted (1.1.2018) by The Indirect Taxes (Disclosure of Avoidance Schemes) Regulations 2017 (S.I. 2017/1215), regs. 1, 6(1)

C2 Sch. 17 para. 8(7) applied (1.1.2018) by The Indirect Taxes (Disclosure of Avoidance Schemes) Regulations 2017 (S.I. 2017/1215), regs. 1, 3(3)

Commencement Information

I8 Sch. 17 para. 8 in force at Royal Assent for specified purposes and at 1.1.2018 otherwise, see s. 66(4)

“Introducer” U.K.

9 (1) 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 proposal. U.K.

(2) A person is not to be treated as an introducer by reason of anything done in prescribed circumstances.

(3) In the application of this Schedule to a proposal or arrangements which are not notifiable, a reference to an introducer is a reference to a person who would be an introducer under this paragraph if the proposal or arrangements were notifiable.

Commencement Information

I9 Sch. 17 para. 9 in force at Royal Assent for specified purposes and at 1.1.2018 otherwise, see s. 66(4)

“Makes a firm approach” and “marketing contact” U.K.

10 (1) A person makes a firm approach to another person in relation to a F6 ... proposal if the person makes a marketing contact with the other person in relation to the proposal at a time when the proposed arrangements have been substantially designed. U.K.

(2) A person makes a marketing contact with another person in relation to a notifiable proposal if—

(a) the person communicates information about the 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 tax advantage that might be expected to be obtained from the proposed arrangements.

(3) For the purposes of sub-paragraph (1) 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 tax advantage mentioned in sub-paragraph (2)(c) might enter into—

(a) transactions of the nature developed, or

(b) transactions not substantially different from transactions of that nature.

Textual Amendments

F6 Word in Sch. 17 para. 10(1) omitted (with application in accordance with Sch. 31 paras. 45, 46 of the amending Act) by virtue of Finance Act 2021 (c. 26), Sch. 31 paras. 21, 44

Commencement Information

I10 Sch. 17 para. 10 in force at Royal Assent for specified purposes and at 1.1.2018 otherwise, see s. 66(4)

Duties of promoter in relation to notifiable proposals or notifiable arrangements U.K.

11 (1) A person who is a promoter in relation to a notifiable proposal must, within the relevant period, provide HMRC with prescribed information relating to the proposal. U.K.

(2) In sub-paragraph (1) “the relevant period” is the period of 31 days beginning with the relevant date.

(3) In sub-paragraph (2) “the relevant date” is the earliest of the following—

(a) the date on which the promoter first makes a firm approach to another person in relation to the proposal,

(b) the date on which the promoter makes the proposal available for implementation by any other person, or

(c) the date on which the promoter first becomes aware of any transaction forming part of notifiable arrangements implementing the proposal.

Commencement Information

I11 Sch. 17 para. 11 in force at Royal Assent for specified purposes and at 1.1.2018 otherwise, see s. 66(4)

12 (1) A person who is a promoter in relation to notifiable arrangements must, within the relevant period after the date on which the person first becomes aware of any transaction forming part of the arrangements, provide HMRC with prescribed information relating to the arrangements. U.K.

(2) In sub-paragraph (1) “the relevant period” is the period of 31 days beginning with that date.

(3) The duty under sub-paragraph (1) does not apply if the notifiable arrangements implement a proposal in respect of which notice has been given to HMRC under paragraph 11(1).

Commencement Information

I12 Sch. 17 para. 12 in force at Royal Assent for specified purposes and at 1.1.2018 otherwise, see s. 66(4)

13 (1) This paragraph applies where a person complies with paragraph 11(1) in relation to a notifiable proposal for arrangements and another person is— U.K.

(a) also a promoter in relation to the proposal or is a promoter in relation to a notifiable proposal for arrangements which are substantially the same as the proposed arrangements (whether they relate to the same or different parties), or

(b) a promoter in relation to notifiable arrangements implementing the proposal or notifiable arrangements which are substantially the same as notifiable arrangements implementing the proposal (whether they relate to the same or different parties).

(2) Any duty of the other person under paragraph 11(1) or 12(1) in relation to the notifiable proposal or notifiable arrangements is discharged if—

(a) the person who complied with paragraph 11(1) has notified the identity and address of the other person to HMRC or the other person holds the reference number allocated to the proposed notifiable arrangements under paragraph 22(1), and

(b) the other person holds the information provided to HMRC in compliance with paragraph 11(1).

Commencement Information

I13 Sch. 17 para. 13 in force at Royal Assent for specified purposes and at 1.1.2018 otherwise, see s. 66(4)

14 (1) This paragraph applies where a person complies with paragraph 12(1) in relation to notifiable arrangements and another person is— U.K.

(a) a promoter in relation to a notifiable proposal for arrangements which are substantially the same as the notifiable arrangements (whether they relate to the same or different parties), or

(b) also a promoter in relation to the notifiable arrangements or notifiable arrangements which are substantially the same (whether they relate to the same or different parties).

(2) Any duty of the other person under paragraph 11(1) or 12(1) in relation to the notifiable proposal or notifiable arrangements is discharged if—

(a) the person who complied with paragraph 12(1) has notified the identity and address of the other person to HMRC or the other person holds the reference number allocated to the notifiable arrangements under paragraph 22(1), and

(b) the other person holds the information provided to HMRC in compliance with paragraph 12(1).

Commencement Information

I14 Sch. 17 para. 14 in force at Royal Assent for specified purposes and at 1.1.2018 otherwise, see s. 66(4)

15 U.K. Where a person is a promoter in relation to two or more notifiable proposals or sets of notifiable arrangements which are substantially the same (whether they relate to the same parties or different parties) the person need not provide information under paragraph 11(1) or 12(1) if the person has already provided information under either of those paragraphs in relation to any of the other proposals or arrangements.

Commencement Information

I15 Sch. 17 para. 15 in force at Royal Assent for specified purposes and at 1.1.2018 otherwise, see s. 66(4)

Duty of promoter: supplemental information U.K.

16 (1) This paragraph applies where— U.K.

(a) a promoter (P) has provided information in purported compliance with paragraph 11(1) or 12(1), but

(b) HMRC believe that P has not provided all the prescribed information.

(2) HMRC may apply to the tribunal for an order requiring P to provide specified information about, or documents relating to, the notifiable proposal or arrangements.

(3) The tribunal may make an order under sub-paragraph (2) in respect of information or documents only if satisfied that HMRC have reasonable grounds for suspecting that the information or documents—

(a) form part of the prescribed information, or

(b) will support or explain the prescribed information.

(4) A requirement by virtue of sub-paragraph (2) is to be treated as part of P's duty under paragraph 11(1) or 12(1).

(5) In so far as P's duty under sub-paragraph (1) of paragraph 11 or 12 arises out of an order made by virtue of sub-paragraph (2) above the relevant period for the purposes of that sub-paragraph (1) is—

(a) the period of 11 days beginning with the date of the order, or

(b) such longer period as HMRC may direct.

Commencement Information

I16 Sch. 17 para. 16 in force at Royal Assent for specified purposes and at 1.1.2018 otherwise, see s. 66(4)

Duty of person dealing with promoter outside United Kingdom U.K.

17 (1) This paragraph applies where a person enters into any transaction forming part of any notifiable arrangements in relation to which— U.K.

(a) a promoter is resident outside the United Kingdom, and

(b) no promoter is resident in the United Kingdom.

(2) The person must, within the relevant period, provide HMRC with prescribed information relating to the arrangements.

(3) In sub-paragraph (2) “the relevant period” is the period of 6 days beginning with the day on which the person enters into the first transaction forming part of the arrangements.

(4) Compliance with paragraph 11(1) or 12(1) by any promoter in relation to the arrangements discharges the person's duty under sub-paragraph (1).

Modifications etc. (not altering text)

C3 Sch. 17 para. 17 restricted (1.1.2018) by The Indirect Taxes (Disclosure of Avoidance Schemes) Regulations 2017 (S.I. 2017/1215), regs. 1, 4(4)

Commencement Information

I17 Sch. 17 para. 17 in force at Royal Assent for specified purposes and at 1.1.2018 otherwise, see s. 66(4)

Duty of parties to notifiable arrangements not involving promoter U.K.

18 (1) This paragraph applies to any person who enters into any transaction forming part of notifiable arrangements as respects which neither that person nor any other person in the United Kingdom is liable to comply with paragraph 11(1), 12(1) or 17(2). U.K.

(2) The person must at the prescribed time provide HMRC with prescribed information relating to the arrangements.

Commencement Information

I18 Sch. 17 para. 18 in force at Royal Assent for specified purposes and at 1.1.2018 otherwise, see s. 66(4)

Duty to provide further information requested by HMRC U.K.

19 (1) This paragraph applies where— U.K.

(a) a person has provided the prescribed information about notifiable proposals or arrangements in compliance with paragraph 11(1), 12(1), 17(2) or 18(2), or

(b) a person has provided information in purported compliance with paragraph 17(2) or 18(2) but HMRC believe that the person has not provided all the prescribed information.

(2) HMRC may require the person to provide—

(a) further specified information about the notifiable proposals or arrangements (in addition to the prescribed information under paragraph 11(1), 12(1), 17(2) or 18(2));

(b) documents relating to the notifiable proposals or arrangements.

(3) Where HMRC impose a requirement on a person under this paragraph, the person must comply with the requirement within—

(a) the period of 10 working days beginning with the day on which HMRC imposed the requirement, or

(b) such longer period as HMRC may direct.

Commencement Information

I19 Sch. 17 para. 19 in force at Royal Assent for specified purposes and at 1.1.2018 otherwise, see s. 66(4)

20 (1) This paragraph applies where HMRC— U.K.

(a) have required a person to provide information or documents under paragraph 19, but

(b) believe that the person has failed to provide the information or documents required.

(2) HMRC may apply to the tribunal for an order requiring the person to provide the information or documents required.

(3) The tribunal may make an order imposing such a requirement only if satisfied that HMRC have reasonable grounds for suspecting that the information or documents will assist HMRC in considering the notifiable proposals or arrangements.

(4) Where the tribunal makes an order imposing such a requirement, the person must comply with the requirement within—

(a) the period of 10 working days beginning with the day on which the tribunal made the order, or

(b) such longer period as HMRC may direct.

Commencement Information

I20 Sch. 17 para. 20 in force at Royal Assent for specified purposes and at 1.1.2018 otherwise, see s. 66(4)

Duty of promoters to provide updated information U.K.

21 (1) This paragraph applies where— U.K.

(a) information has been provided under paragraph 11(1), or 12(1) about any notifiable arrangements, or proposed notifiable arrangements, to which a reference number is allocated under paragraph 22, and

(b) after the provision of the information, there is a change in relation to the arrangements of a kind mentioned in sub-paragraph (2).

(2) The changes referred to in sub-paragraph (1)(b) are—

(a) a change in the name by which the notifiable arrangements, or proposed notifiable arrangements, are known;

(b) a change in the name or address of any person who is a promoter in relation to the arrangements or, in the case of proposed arrangements, the notifiable proposal.

(3) A person who is a promoter in relation to the notifiable arrangements or, in the case of proposed notifiable arrangements, the notifiable proposal must inform HMRC of the change mentioned in sub-paragraph (1)(b) within 30 days after it is made.

(4) Sub-paragraphs (5) and (6) apply for the purposes of sub-paragraph (3) where there is more than one person who is a promoter in relation to the notifiable arrangements or proposal.

(5) If the change in question is a change in the name or address of a person who is a promoter in relation to the notifiable arrangements or proposal, it is the duty of that person to comply with sub-paragraph (3).

(6) If a person provides information in compliance with sub-paragraph (3), the duty imposed by that sub-paragraph on any other person, so far as relating to the provision of that information, is discharged.

Commencement Information

I21 Sch. 17 para. 21 in force at Royal Assent for specified purposes and at 1.1.2018 otherwise, see s. 66(4)

[F7 Notice of potential allocation of reference number: arrangements and proposals suspected of being notifiable U.K.

Textual Amendments

F7 Sch. 17 para. 21A and cross-heading inserted (with application in accordance with Sch. 31 paras. 45, 46 of the amending Act) by Finance Act 2021 (c. 26), Sch. 31 paras. 22, 44

21A (1) This paragraph applies where— U.K.

(a) HMRC have become aware that—

(i) a transaction forming part of arrangements has been entered into,

(ii) a firm approach has been made to a person in relation to a proposal for arrangements, with a view to making the proposal available for implementation, or

(iii) a proposal for arrangements is made available for implementation, and

(b) HMRC have reasonable grounds for suspecting that the arrangements are notifiable, or the proposal is notifiable.

(2) HMRC may issue a notice to a person explaining that, unless the person is able to satisfy HMRC, before the end of the notice period, that the arrangements are not notifiable or (as the case may be) the proposal is not notifiable, HMRC may allocate a reference number to the arrangements or (in the case of a proposal) the proposed arrangements.

(3) But HMRC may not issue a notice under this paragraph before the end of the period of 15 days beginning with the day on which they first become aware that the condition in paragraph (a)(i), (ii) or (iii) of sub-paragraph (1) is met.

(4) A notice under this paragraph must be issued to any person who, on the day the notice is issued, HMRC reasonably suspect to be a promoter in relation to the arrangements or proposal.

(5) A notice under this paragraph may be issued to any other person who HMRC reasonably suspect to be involved in the supply of the arrangements or proposed arrangements.]

[F8 Allocation of reference number to arrangements U.K.

Textual Amendments

F8 Sch. 17 paras. 22-22C and cross-headings substituted for Sch. 17 para. 22 and cross-heading (with application in accordance with Sch. 31 paras. 45, 46 of the amending Act) by Finance Act 2021 (c. 26), Sch. 31 paras. 23, 44

22 (1) This paragraph applies in— U.K.

(a) a sub-paragraph (2) case, or

(b) a sub-paragraph (3) case.

(2) A “sub-paragraph (2) case” is a case where a person complies, or purports to comply, with paragraph 11(1), 12(1), 17(2) or 18(2) in relation to a notifiable proposal or notifiable arrangements.

(3) A “sub-paragraph (3) case” is a case where—

(a) notice in relation to arrangements or a proposal has been issued in accordance with paragraph 21A (notice of potential allocation of reference number),

(b) the notice period has expired, and

(c) the person to whom the notice was given has failed to satisfy HMRC, before the expiry of the notice period, that the arrangements are not notifiable or (as the case may be) that the proposal is not notifiable.

(4) “The notice period” means—

(a) the period of 30 days beginning with the day on which the notice under paragraph 21A is issued, or

(b) such longer period as HMRC may direct.

(5) HMRC may allocate a reference number to the arrangements or, in the case of a proposal, the proposed arrangements, subject to sub-paragraph (6).

(6) HMRC may not allocate a reference number to arrangements or proposed arrangements after the time limit for doing so.

(7) The time limit for allocating a reference number is—

(a) in a sub-paragraph (2) case, the end of the period of 90 days beginning with the compliance, or purported compliance, with paragraph 11(1), 12(1), 17(2) or 18(2), as the case may be;

(b) in a sub-paragraph (3) case, the end of the period of one year beginning with the day after the end of the notice period (see sub-paragraph (4)).

(8) HMRC may at any time withdraw a reference number allocated to arrangements in a sub-paragraph (3) case.

(9) The allocation of a reference number to arrangements or proposed arrangements is not to be regarded as constituting an indication by HMRC that the arrangements could as a matter of law result in the obtaining by any person of a tax advantage.]

[F8 Duty of HMRC to notify persons of reference number U.K.

22A (1) If a reference number is allocated in a case within paragraph 22(2), HMRC must notify the following of the number— U.K.

(a) the person who has complied, or purported to comply, with paragraph 11(1), 12(1), 17(2) or 18(2), and

(b) where the person has complied, or purported to comply, with paragraph 11(1) or 12(1), any other person—

(i) who is a promoter in relation to the proposal (or arrangements implementing it) or the arrangements (or a proposal implemented by them), and

(ii) whose identity and address have been notified to HMRC by the person who complied, or purported to comply, with paragraph 11(1) or 12(1).

(2) If a reference number is allocated in a case within paragraph 22(3), HMRC must notify the following of the number—

(a) any person who HMRC reasonably suspect to be, or to have been, a promoter in relation to the arrangements or the proposed arrangements, and

(b) any other person who HMRC reasonably suspect to be, or to have been, involved in the supply of the arrangements or the proposed arrangements.

(3) The duty in sub-paragraph (2) applies irrespective of whether the notice under paragraph 21A as a result of which the reference number was allocated has been issued to the person concerned.]

[F8 Right of appeal: paragraph 22(3) case U.K.

22B (1) This paragraph applies where HMRC have allocated a reference number to arrangements or proposed arrangements in a case within paragraph 22(3). U.K.

(2) A person who has been notified of the reference number may appeal to the tribunal against its allocation.

(3) An appeal under this paragraph may be brought only on the following grounds—

(a) that, in issuing the notice under paragraph 21A as a result of which the reference number was allocated, HMRC did not act in accordance with that paragraph;

(b) that, in allocating the reference number, HMRC did not act in accordance with paragraph 22;

(c) that the arrangements are not in fact notifiable arrangements or, in the case of proposed arrangements, that the proposal for the arrangements is not in fact a notifiable proposal.

(4) Notice of appeal under this paragraph must be given to the tribunal in writing before the end of the period of 30 days beginning with the day on which the person is notified of the number by HMRC.

(5) Notice may be given after that time if the tribunal give permission.

(6) The notice of appeal must specify the grounds of appeal.

(7) On an appeal under this paragraph, the tribunal may affirm or cancel HMRC's decision.

(8) If the tribunal cancel HMRC's decision, HMRC must withdraw the reference number.

(9) Bringing an appeal under this paragraph does not prevent—

(a) a power conferred by this Part of this Schedule from being exercised, or

(b) a duty imposed by this Part of this Schedule from continuing to apply.]

[F8 Duty to provide further information requested by HMRC: paragraph 22(3) case U.K.

22C (1) This paragraph applies where HMRC have allocated a reference number to arrangements or proposed arrangements in a case within paragraph 22(3). U.K.

(2) HMRC may require a relevant person to provide—

(a) specified information about the arrangements or proposed arrangements;

(b) documents relating to the arrangements or proposed arrangements.

(3) In sub-paragraph (2), “relevant person” means—

(a) any person who HMRC reasonably suspect to be, or to have been, a promoter in relation to the arrangements or the proposed arrangements;

(b) any other person who HMRC reasonably suspect to be, or to have been, involved in the supply of the arrangements or the proposed arrangements.

(4) HMRC may require information or documents only if they have reasonable grounds for suspecting that the information or documents will assist them in considering the arrangements or proposed arrangements.

(5) Where HMRC impose a requirement on a person under sub-paragraph (2), the person must comply with the requirement before the end of—

(a) the period of 10 working days beginning with the day on which HMRC imposed the requirement, or

(b) such longer period as HMRC may direct.]

Duty of promoter to notify client of number [F9 : paragraph 22(2) case] U.K.

Textual Amendments

F9 Words in Sch. 17 para. 23 cross-heading inserted (with application in accordance with Sch. 31 paras. 45, 46 of the amending Act) by Finance Act 2021 (c. 26), Sch. 31 paras. 24, 44

23 (1) This paragraph applies where a person who is a promoter in relation to notifiable arrangements is providing (or has provided) services to any person (“the client”) in connection with the arrangements. U.K.

(2) The promoter must, within 30 days after the relevant date, provide the client with prescribed information relating to any reference number [F10 allocated in a case within paragraph 22(2)] (or, if more than one, any [F11 one such reference number]) that has been notified to the promoter (whether by HMRC or any other person) in relation to—

(a) the notifiable arrangements, or

(b) any arrangements substantially the same as the notifiable arrangements (whether involving the same or different parties).

(3) In sub-paragraph (2) “the relevant date” means the later of—

(a) the date on which the promoter becomes aware of any transaction which forms part of the notifiable arrangements, and

(b) the date on which the reference number is notified to the promoter.

(4) But where the conditions in sub-paragraph (5) are met the duty imposed on the promoter under sub-paragraph (2) to provide the client with information in relation to notifiable arrangements is discharged

(5) Those conditions are—

(a) that the promoter is also a promoter in relation to a notifiable proposal and provides services to the client in connection with them both,

(b) the notifiable proposal and the notifiable arrangements are substantially the same, and

(c) the promoter has provided to the client, in a form and manner specified by HMRC, prescribed information relating to the reference number that has been notified to the promoter in relation to the proposed notifiable arrangements.

(6) HMRC may give notice that, in relation to notifiable arrangements specified in the notice, promoters are not under the duty under sub-paragraph (2) after the date specified in the notice.

Textual Amendments

F10 Words in Sch. 17 para. 23(2) inserted (with application in accordance with Sch. 31 paras. 45, 46 of the amending Act) by Finance Act 2021 (c. 26), Sch. 31 paras. 25(2)(a), 44

F11 Words in Sch. 17 para. 23(2) substituted (with application in accordance with Sch. 31 paras. 45, 46 of the amending Act) by Finance Act 2021 (c. 26), Sch. 31 paras. 25(2)(b), 44

Commencement Information

I22 Sch. 17 para. 23 in force at Royal Assent for specified purposes and at 1.1.2018 otherwise, see s. 66(4)

[F12 Duty to notify client of reference number: paragraph 22(3) case U.K.

Textual Amendments

F12 Sch. 17 para. 23A and cross-heading inserted (with application in accordance with Sch. 31 paras. 45, 46 of the amending Act) by Finance Act 2021 (c. 26), Sch. 31 paras. 26, 44

23A (1) This paragraph applies where a person is providing (or has provided) services to any person (“the client”) in connection with arrangements or proposed arrangements. U.K.

(2) The person must, before the end of the period of 30 days beginning with the relevant date, provide the client with prescribed information relating to any reference number allocated in a case within paragraph 22(3) (or, if more than one, any one such reference number) that has been notified to the person (whether by HMRC or any other person) in relation to—

(a) the arrangements or proposed arrangements, or

(b) any arrangements substantially the same as the arrangements or proposed arrangements (whether involving the same or different parties).

(3) “The relevant date” means the date on which the person has been notified of the reference number.

(4) HMRC may give notice that, in relation to arrangements or proposed arrangements specified in the notice, no person is under the duty under sub-paragraph (2) after the date specified in the notice.]

Duty of client to notify parties of number U.K.

24 (1) In this paragraph “client” means a person to whom a person F13 ... is providing (or has provided) services in connection with [F14 arrangements or a proposal]. U.K.

[F15 (2) Sub-paragraph (3) applies where—

(a) the client receives prescribed information under paragraph 23 relating to the reference number allocated to—

(i) the arrangements or proposed arrangements, or

(ii) any arrangements substantially the same as the arrangements or proposed arrangements; or

(b) the client receives prescribed information under paragraph 23A relating to the reference number allocated to—

(i) the arrangements or proposed arrangements, or

(ii) any arrangements substantially the same as the arrangements or proposed arrangements.]

(3) The client must, within the relevant period, provide prescribed information relating to the reference number to any other person—

(a) who the client might reasonably be expected to know is or is likely to be a party to the arrangements or proposed arrangements, and

(b) who might reasonably be expected to gain a tax advantage in relation to any relevant tax by reason of the arrangements or proposed arrangements.

(4) In sub-paragraph (3) “the relevant period” is the period of 30 days beginning with the later of—

(a) the day on which the client first becomes aware of any transaction forming part of [F16 the arrangements or proposed arrangements], and

(b) the day on which the prescribed information is notified to the client [F17 under paragraph 23 or (as the case may be) paragraph 23A].

(5) HMRC may give notice that, in relation to [F18 arrangements or a proposal] specified in the notice, persons are not under the duty under sub-paragraph (3) after the date specified in the notice.

(6) The duty under sub-paragraph (3) does not apply in prescribed circumstances.

(7) For the purposes of this paragraph a tax is a “relevant tax”, in relation to arrangements or arrangements proposed in a proposal of any description, if it is prescribed in relation to arrangements or proposals of that description by regulations under paragraph 3(1).

Textual Amendments

F13 Words in Sch. 17 para. 24(1) omitted (with application in accordance with Sch. 31 paras. 45, 46 of the amending Act) by virtue of Finance Act 2021 (c. 26), Sch. 31 paras. 27(2)(a), 44

F14 Words in Sch. 17 para. 24(1) substituted (with application in accordance with Sch. 31 paras. 45, 46 of the amending Act) by Finance Act 2021 (c. 26), Sch. 31 paras. 27(2)(b), 44

F15 Sch. 17 para. 24(2) substituted (with application in accordance with Sch. 31 paras. 45, 46 of the amending Act) by Finance Act 2021 (c. 26), Sch. 31 paras. 27(3), 44

F16 Words in Sch. 17 para. 24(4)(a) substituted (with application in accordance with Sch. 31 paras. 45, 46 of the amending Act) by Finance Act 2021 (c. 26), Sch. 31 paras. 27(4), 44

F17 Words in Sch. 17 para. 24(4)(b) substituted (with application in accordance with Sch. 31 paras. 45, 46 of the amending Act) by Finance Act 2021 (c. 26), Sch. 31 paras. 27(5), 44

F18 Words in Sch. 17 para. 24(5) substituted (with application in accordance with Sch. 31 paras. 45, 46 of the amending Act) by Finance Act 2021 (c. 26), Sch. 31 paras. 27(6), 44

Commencement Information

I23 Sch. 17 para. 24 in force at Royal Assent for specified purposes and at 1.1.2018 otherwise, see s. 66(4)

Duty of client to provide information F19 ... U.K.

Textual Amendments

F19 Words in Sch. 17 para. 25 cross-heading omitted (with application in accordance with Sch. 31 paras. 45, 46 of the amending Act) by virtue of Finance Act 2021 (c. 26), Sch. 31 paras. 28, 44

25 [F20 (1) This paragraph applies where a person (“the client”) has been provided with information under paragraph 23(2) or 23A(2) (prescribed information about reference number).] U.K.

(2) The client must, within the relevant period, provide the [F21 person who provided the information] with prescribed information relating to the client.

(3) In sub-paragraph (2) “the relevant period” is the period of 11 days beginning with the later of—

(a) the date the client receives the reference number for the arrangements, and

(b) the date the client first enters into a transaction which forms part of the arrangements.

(4) The duty under sub-paragraph (2) is subject to any exceptions that may be prescribed.

Textual Amendments

F20 Sch. 17 para. 25(1) substituted (with application in accordance with Sch. 31 paras. 45, 46 of the amending Act) by Finance Act 2021 (c. 26), Sch. 31 paras. 29(2), 44

F21 Words in Sch. 17 para. 25(2) substituted (with application in accordance with Sch. 31 paras. 45, 46 of the amending Act) by Finance Act 2021 (c. 26), Sch. 31 paras. 29(3), 44

Commencement Information

I24 Sch. 17 para. 25 in force at Royal Assent for specified purposes and at 1.1.2018 otherwise, see s. 66(4)

[F22 Duty of parties to notify HMRC of reference number etc] U.K.

Textual Amendments

F22 Sch. 17 para. 26 cross-heading substituted (with application in accordance with Sch. 31 paras. 45, 46 of the amending Act) by Finance Act 2021 (c. 26), Sch. 31 paras. 30, 44

26 (1) Any person (P) who is a party to any F23 ... arrangements must provide HMRC with prescribed information relating to— U.K.

(a) any reference number notified to P under paragraph 23 [F24 , 23A] or 24, and

(b) the time when P obtains or expects to obtain by virtue of the arrangements a tax advantage in relation to any relevant tax.

(2) For the purposes of sub-paragraph (1) a tax is a “relevant tax” in relation to [F25 arrangements of any description] if it is prescribed in relation to arrangements of that description by regulations under paragraph 3(1).

(3) Regulations made by the Commissioners may—

(a) in prescribed cases, require the information prescribed under sub-paragraph (1) to be given to HMRC—

(i) in the prescribed manner,

(ii) in the prescribed form,

(iii) at the prescribed time, and

(b) in prescribed cases, require the information prescribed under sub-paragraph (1) and such other information as is prescribed to be provided separately to HMRC at the prescribed time or times.

(4) In sub-paragraph (3) “prescribed” includes being prescribed in a document made under a power conferred by regulations made by the Commissioners.

(5) HMRC may give notice that, in relation to F26 ... arrangements specified in the notice, persons are not under the duty under sub-paragraph (1) after the date specified in the notice.

(6) The duty under sub-paragraph (1) does not apply in prescribed circumstances.

Textual Amendments

F23 Word in Sch. 17 para. 26(1) omitted (with application in accordance with Sch. 31 paras. 45, 46 of the amending Act) by virtue of Finance Act 2021 (c. 26), Sch. 31 paras. 31(2), 44

F24 Word in Sch. 17 para. 26(1)(a) inserted (with application in accordance with Sch. 31 paras. 45, 46 of the amending Act) by Finance Act 2021 (c. 26), Sch. 31 paras. 31(3), 44

F25 Words in Sch. 17 para. 26(2) substituted (with application in accordance with Sch. 31 paras. 45, 46 of the amending Act) by Finance Act 2021 (c. 26), Sch. 31 paras. 31(4), 44

F26 Word in Sch. 17 para. 26(5) omitted (with application in accordance with Sch. 31 paras. 45, 46 of the amending Act) by virtue of Finance Act 2021 (c. 26), Sch. 31 paras. 31(5), 44

Commencement Information

I25 Sch. 17 para. 26 in force at Royal Assent for specified purposes and at 1.1.2018 otherwise, see s. 66(4)

Duty F27 ... to provide details of clients U.K.

Textual Amendments

F27 Words in Sch. 17 para. 27 cross-heading omitted (with application in accordance with Sch. 31 paras. 45, 46 of the amending Act) by virtue of Finance Act 2021 (c. 26), Sch. 31 paras. 32, 44

27 (1) This paragraph applies where a person who is a promoter in relation to notifiable arrangements is providing (or has provided) services to any person (“the client”) in connection with the arrangements and either— U.K.

[F28 (a) the promoter is subject to the requirement under paragraph 23(2) to provide to the client prescribed information relating to the reference number allocated to—

(i) the arrangements, or

(ii) any arrangements substantially the same as the arrangements; or

(b) the promoter has failed to comply with paragraph 11(1) or 12(1) in relation to the notifiable arrangements (or the notifiable proposal for them) but would be subject to that requirement if a reference number had been allocated to—

(i) the notifiable arrangements, or

(ii) any arrangements substantially the same as the arrangements.]

[F29 (1A) This paragraph also applies where—

(a) a person (“the provider”) is providing (or has provided) services to another person (“the client”) in connection with arrangements or proposed arrangements, and

(b) the provider is subject to the requirement under paragraph 23A(2) to provide to the client prescribed information relating to the reference number allocated to—

(i) the arrangements or proposed arrangements, or

(ii) any arrangements substantially the same as the arrangements or proposed arrangements.]

F30 (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) The promoter [F31 or (as the case may be) provider] must, within the prescribed period after the end of the relevant period, provide HMRC with prescribed information in relation to the client.

[F32 (4) In sub-paragraph (3) “the relevant period” means—

(a) in a case within sub-paragraph (1), such period as is prescribed and is a period during which the promoter is or would be subject to the requirement mentioned in that sub-paragraph;

(b) in a case within sub-paragraph (1A), such period as is prescribed and is a period during which the provider is or would be subject to the requirement mentioned in that sub-paragraph.]

(5) The promoter need not comply with sub-paragraph (3) in relation to any notifiable arrangements at any time after HMRC have given notice under paragraph 23(6) in relation to the arrangements.

[F33 (6) The provider need not comply with sub-paragraph (3) in relation to any arrangements at any time after HMRC have given notice under paragraph 23A(4) in relation to the arrangements.]

Textual Amendments

F28 Sch. 17 para. 27(1)(a)(b) substituted (with application in accordance with Sch. 31 paras. 45, 46 of the amending Act) by Finance Act 2021 (c. 26), Sch. 31 paras. 33(2), 44

F29 Sch. 17 para. 27(1A) inserted (with application in accordance with Sch. 31 paras. 45, 46 of the amending Act) by Finance Act 2021 (c. 26), Sch. 31 paras. 33(3), 44

F30 Sch. 17 para. 27(2) omitted (with application in accordance with Sch. 31 paras. 45, 46 of the amending Act) by virtue of Finance Act 2021 (c. 26), Sch. 31 paras. 33(4), 44

F31 Words in Sch. 17 para. 27(3) inserted (with application in accordance with Sch. 31 paras. 45, 46 of the amending Act) by Finance Act 2021 (c. 26), Sch. 31 paras. 33(5), 44

F32 Sch. 17 para. 27(4) substituted (with application in accordance with Sch. 31 paras. 45, 46 of the amending Act) by Finance Act 2021 (c. 26), Sch. 31 paras. 33(6), 44

F33 Sch. 17 para. 27(6) inserted (with application in accordance with Sch. 31 paras. 45, 46 of the amending Act) by Finance Act 2021 (c. 26), Sch. 31 paras. 33(7), 44

Commencement Information

I26 Sch. 17 para. 27 in force at Royal Assent for specified purposes and at 1.1.2018 otherwise, see s. 66(4)

Enquiry following disclosure of client details U.K.

28 (1) This paragraph applies where— U.K.

[F34 (a) a person (“the service provider”) is providing or has provided services to another person (“the client”) in connection with arrangements or proposed arrangements,

(aa) the service provider has provided HMRC with information in relation to the client under paragraph 27(3), and]

(b) HMRC suspect that a person other than the client is or is likely to be a party to the arrangements.

(2) HMRC may by written notice require the [F35 service provider] to provide prescribed information in relation to any person other than the client who the [F35 service provider] might reasonably be expected to know is or is likely to be a party to the arrangements.

(3) The [F36 service provider] must comply with a requirement under or by virtue of sub-paragraph (2) within—

(a) the relevant period, or

(b) such longer period as HMRC may direct.

(4) In sub-paragraph (3) “the relevant period” is the period of 11 days beginning with the day on which the [F37 service provider] receives the notice under sub-paragraph (2).

Textual Amendments

F34 Sch. 17 para. 28(1)(a)(aa) substituted for Sch. 17 para. 28(1)(a) (with application in accordance with Sch. 31 paras. 45, 46 of the amending Act) by Finance Act 2021 (c. 26), Sch. 31 paras. 34(2), 44

F35 Words in Sch. 17 para. 28(2) substituted (with application in accordance with Sch. 31 paras. 45, 46 of the amending Act) by Finance Act 2021 (c. 26), Sch. 31 paras. 34(3), 44

F36 Words in Sch. 17 para. 28(3) substituted (with application in accordance with Sch. 31 paras. 45, 46 of the amending Act) by Finance Act 2021 (c. 26), Sch. 31 paras. 34(4), 44

F37 Words in Sch. 17 para. 28(4) substituted (with application in accordance with Sch. 31 paras. 45, 46 of the amending Act) by Finance Act 2021 (c. 26), Sch. 31 paras. 34(5), 44

Commencement Information

I27 Sch. 17 para. 28 in force at Royal Assent for specified purposes and at 1.1.2018 otherwise, see s. 66(4)

Pre-disclosure enquiry U.K.

29 (1) Where HMRC suspect that a person (P) is the promoter or introducer of a proposal, or the promoter of arrangements, which may be notifiable, they may by written notice require P to state— U.K.

(a) whether in P's opinion the proposal or arrangements are notifiable by P, and

(b) if not, the reasons for P's opinion.

(2) The notice must specify the proposal or arrangements to which it relates.

(3) For the purposes of sub-paragraph (1)(b)—

(a) it is not sufficient to refer to the fact that a lawyer or other professional has given an opinion,

(b) the reasons must show, by reference to this Part of this Schedule and regulations under it, why P thinks the proposal or arrangements are not notifiable by P, and

(c) in particular, if P asserts that the arrangements do not fall within any description prescribed under paragraph 3(1)(a), the reasons must provide sufficient information to enable HMRC to confirm the assertion.

(4) P must comply with a requirement under or by virtue of sub-paragraph (1) within—

(a) the relevant period, or

(b) such longer period as HMRC may direct.

(5) In sub-paragraph (4) “the relevant period” is the period of 11 days beginning with the day on which the notice under sub-paragraph (1) is issued.

Commencement Information

I28 Sch. 17 para. 29 in force at Royal Assent for specified purposes and at 1.1.2018 otherwise, see s. 66(4)

Reasons for non-disclosure: supporting information U.K.

30 (1) Where HMRC receive from a person (P) a statement of reasons why a proposal or arrangements are not notifiable by P, HMRC may apply to the tribunal for an order requiring P to provide specified information or documents in support of the reasons. U.K.

(2) P must comply with a requirement under or by virtue of sub-paragraph (1) within—

(a) the relevant period, or

(b) such longer period as HMRC may direct.

(3) In sub-paragraph (2) “the relevant period” is the period of 15 days beginning with the day on which the order concerned is made.

(4) The power under sub-paragraph (1)—

(a) may be exercised more than once, and

(b) applies whether or not the statement of reasons was received under paragraph 29(1)(b).

Commencement Information

I29 Sch. 17 para. 30 in force at Royal Assent for specified purposes and at 1.1.2018 otherwise, see s. 66(4)

Provision of information to HMRC by introducers U.K.

31 (1) This paragraph applies where HMRC suspect— U.K.

(a) that a person (P) is an introducer in relation to a proposal, and

(b) that the proposal may be notifiable.

(2) HMRC may by written notice require P to provide HMRC with one or both of the following—

(a) prescribed information in relation to each person who has provided P with any information relating to the proposal,

(b) prescribed information in relation to each person with whom P has made a marketing contact in relation to the proposal.

(3) A notice must specify the proposal to which it relates.

(4) P must comply with a requirement under or sub-paragraph(2) within—

(a) the relevant period, or

(b) such longer period as HMRC may direct.

(5) In sub-paragraph (4) “the relevant period” is the period of 11 days beginning with the day on which the notice under sub-paragraph (2) is given.

Commencement Information

I30 Sch. 17 para. 31 in force at Royal Assent for specified purposes and at 1.1.2018 otherwise, see s. 66(4)

Legal professional privilege U.K.

32 (1) Nothing in this Part of this Schedule requires any person to disclose to HMRC any privileged information. U.K.

(2) In this Part of this Schedule “privileged information” means information with respect to which a claim to legal professional privilege, or, in Scotland, to confidentiality of communications, could be maintained in legal proceedings.

Commencement Information

I31 Sch. 17 para. 32 in force at Royal Assent for specified purposes and at 1.1.2018 otherwise, see s. 66(4)

Information U.K.

33 (1) This paragraph applies where a person is required to provide information under paragraph 23(2) [F38 , 23A(2)] or 24(3). U.K.

(2) HMRC may specify additional information which must be provided by that person to the recipients under paragraph 23(2) [F39 , 23A(2)] or 24(3) at the same time as the information referred to in sub-paragraph (1).

(3) HMRC may specify the form and manner in which the additional information is to be provided.

(4) For the purposes of this paragraph “additional information” means information supplied by HMRC which relates to notifiable proposals or notifiable arrangements in general.

Textual Amendments

F38 Word in Sch. 17 para. 33(1) inserted (with application in accordance with Sch. 31 paras. 45, 46 of the amending Act) by Finance Act 2021 (c. 26), Sch. 31 paras. 35, 44

F39 Word in Sch. 17 para. 33(2) inserted (with application in accordance with Sch. 31 paras. 45, 46 of the amending Act) by Finance Act 2021 (c. 26), Sch. 31 paras. 35, 44

Commencement Information

I32 Sch. 17 para. 33 in force at Royal Assent for specified purposes and at 1.1.2018 otherwise, see s. 66(4)

34 (1) HMRC may specify the form and manner in which information required to be provided by or under any of the information provisions must be provided if the provision is to be complied with. U.K.

(2) The “information provisions” are paragraphs 11(1), 12(1), 17(2), 18(2), 19(2), 21(3), [F40 22C,] 23(2), [F41 23A(2),] 24(3), 26(1) and (3), 27(3), 28(2), 29(1), 31(2) and 33(2).

Textual Amendments

F40 Word in Sch. 17 para. 34(2) inserted (with application in accordance with Sch. 31 paras. 45, 46 of the amending Act) by Finance Act 2021 (c. 26), Sch. 31 paras. 36(a), 44

F41 Word in Sch. 17 para. 34(2) inserted (with application in accordance with Sch. 31 paras. 45, 46 of the amending Act) by Finance Act 2021 (c. 26), Sch. 31 paras. 36(b), 44

Commencement Information

I33 Sch. 17 para. 34 in force at Royal Assent for specified purposes and at 1.1.2018 otherwise, see s. 66(4)

35 U.K. No duty of confidentiality or other restriction on disclosure (however imposed) prevents the voluntary disclosure by any person to HMRC of information or documents which the person has reasonable grounds for suspecting will assist HMRC in determining whether there has been a breach of any requirement imposed by or under this Part of this Schedule.

Commencement Information

I34 Sch. 17 para. 35 in force at Royal Assent for specified purposes and at 1.1.2018 otherwise, see s. 66(4)

36 [F42 (1) HMRC may publish information about— U.K.

(a) any arrangements, or proposed arrangements, to which a reference number is allocated under paragraph 22;

(b) where the reference number is allocated in a case within paragraph 22(2), any person who is a promoter in relation to the arrangements or, in the case of proposed arrangements, the proposal;

(c) where the reference number is allocated in a case within paragraph 22(3), any person who is or has been—

(i) a promoter in relation to the arrangements or proposed arrangements, or

(ii) otherwise involved in the supply of the arrangements or proposed arrangements.]

(2) The information that may be published is (subject to sub-paragraph (4))—

(a) any information relating to arrangements within sub-paragraph (1)(a), or a person within sub-paragraph (1)(b) [F43 or (c)], that is prescribed information for the purposes of paragraph [F44 any provision of this Part];

[F45 (b) any ruling of a court or tribunal relating to—

(i) arrangements within sub-paragraph (1)(a);

(ii) a person within sub-paragraph (1)(b), in that person's capacity as a promoter;

(iii) a person within sub-paragraph (1)(c), in that person's capacity as a promoter or a person otherwise involved in the supply of arrangements or proposed arrangements;]

(c) the number of persons in any period who enter into transactions forming part of F46 ... arrangements within sub-paragraph (1)(a);

(d) any other information that HMRC considers it appropriate to publish for the purpose of identifying arrangements within sub-paragraph (1)(a) or a person within sub-paragraph (1)(b) [F47 or (c)].

(3) The information may be published in any manner that HMRC considers appropriate.

(4) No information may be published under this paragraph that identifies a person who enters into a transaction forming part of F48 ... arrangements within sub-paragraph (1)(a).

[F49 (4A) No information may be published under this paragraph in respect of a person involved in the supply of arrangements or proposed arrangements where there are reasonable grounds for believing that the person's involvement is limited to activities subject to legal professional privilege.]

(5) But where a person [F50 within sub-paragraph (1)(b) or (c)] is also a person mentioned in sub-paragraph (4), nothing in sub-paragraph (4) is to be taken as preventing the publication under this paragraph of information so far as relating to the person's activities [F51 as a promoter or a person involved in the supply of arrangements or proposed arrangements].

(6) Before publishing any information under this paragraph that identifies a person as [F52 a person within sub-paragraph (1)(b) or (c)], HMRC must—

(a) inform the person that they are considering doing so, and

(b) give the person reasonable opportunity to make representations about whether it should be published.

[F53 (7) Where the reference number is allocated in a case within paragraph 22(3)—

(a) information that identifies a person within sub-paragraph (1)(b) or (c) may not be published for the first time after the end of the period of one year beginning with the day on which the reference number is allocated;

(b) no information that identifies a person within sub-paragraph (1)(b) or (c) may be published (or continue to be published) after the end of the period of one year beginning with the day on which it is first published.

(8) In determining a period of one year for the purposes of sub-paragraph (7)(a) or (b), no account is to be taken of any period during which HMRC are prohibited from publishing the information because of proceedings before a court or tribunal.]

Textual Amendments

F42 Sch. 17 para. 36(1) substituted (with application in accordance with Sch. 31 paras. 45, 46 of the amending Act) by Finance Act 2021 (c. 26), Sch. 31 paras. 37(2), 44

F43 Words in Sch. 17 para. 36(2)(a) inserted (with application in accordance with Sch. 31 paras. 45, 46 of the amending Act) by Finance Act 2021 (c. 26), Sch. 31 paras. 37(3)(a)(i), 44

F44 Words in Sch. 17 para. 36(2)(a) substituted (with application in accordance with Sch. 31 paras. 45, 46 of the amending Act) by Finance Act 2021 (c. 26), Sch. 31 paras. 37(3)(a)(ii), 44

F45 Sch. 17 para. 36(2)(b) substituted (with application in accordance with Sch. 31 paras. 45, 46 of the amending Act) by Finance Act 2021 (c. 26), Sch. 31 paras. 37(3)(b), 44

F46 Word in Sch. 17 para. 36(2)(c) omitted (with application in accordance with Sch. 31 paras. 45, 46 of the amending Act) by virtue of Finance Act 2021 (c. 26), Sch. 31 paras. 37(3)(c), 44

F47 Words in Sch. 17 para. 36(2)(d) inserted (with application in accordance with Sch. 31 paras. 45, 46 of the amending Act) by Finance Act 2021 (c. 26), Sch. 31 paras. 37(3)(d), 44

F48 Word in Sch. 17 para. 36(4) omitted (with application in accordance with Sch. 31 paras. 45, 46 of the amending Act) by virtue of Finance Act 2021 (c. 26), Sch. 31 paras. 37(4), 44

F49 Sch. 17 para. 36(4A) inserted (with application in accordance with Sch. 31 paras. 45, 46 of the amending Act) by Finance Act 2021 (c. 26), Sch. 31 paras. 37(5), 44

F50 Words in Sch. 17 para. 36(5) substituted (with application in accordance with Sch. 31 paras. 45, 46 of the amending Act) by Finance Act 2021 (c. 26), Sch. 31 paras. 37(6)(a), 44

F51 Words in Sch. 17 para. 36(5) substituted (with application in accordance with Sch. 31 paras. 45, 46 of the amending Act) by Finance Act 2021 (c. 26), Sch. 31 paras. 37(6)(b), 44

F52 Words in Sch. 17 para. 36(6) substituted (with application in accordance with Sch. 31 paras. 45, 46 of the amending Act) by Finance Act 2021 (c. 26), Sch. 31 paras. 37(7), 44

F53 Sch. 17 para. 36(7)(8) inserted (with application in accordance with Sch. 31 paras. 45, 46 of the amending Act) by Finance Act 2021 (c. 26), Sch. 31 paras. 37(8), 44

Commencement Information

I35 Sch. 17 para. 36 in force at Royal Assent for specified purposes and at 1.1.2018 otherwise, see s. 66(4)

37 (1) This paragraph applies if— U.K.

(a) information about F54 ... arrangements, or proposed F54 ... arrangements, is published under paragraph 36,

(b) at any time after the information is published, a ruling of a court or tribunal is made in relation to tax arrangements, and

(c) HMRC is of the opinion that the ruling is relevant to the arrangements mentioned in paragraph (a)

(2) A ruling is “relevant” to the arrangements if—

(a) the principles laid down, or reasoning given, in the ruling would, if applied to the arrangements, allow the purported advantage arising from the arrangements in relation to tax, and

(b) the ruling is final.

(3) HMRC must publish information about the ruling.

(4) The information must be published in the same manner as HMRC published the information mentioned in sub-paragraph (1)(a) (and may also be published in any other manner that HMRC considers appropriate).

(5) A ruling is “final” if it is—

(a) a ruling of the Supreme Court, or

(b) a ruling of any other court or tribunal in circumstances where—

(i) no appeal may be made against the ruling,

(ii) if an appeal may be made against the ruling with permission, the time limit for applications has expired and either no application has been made or permission has been refused,

(iii) if such permission to appeal against the ruling has been granted or is not required, no appeal has been made within the time limit for appeals, or

(iv) if an appeal was made, it was abandoned or otherwise disposed of before it was determined by the court or tribunal to which it was addressed.

(6) Where a ruling is final by virtue of sub-paragraph (ii), (iii) or (iv) of sub-paragraph (5)(b), the ruling is to be treated as made at the time when the sub-paragraph in question is first satisfied.

(7) In this paragraph “tax arrangements” means arrangements in respect of which it would be reasonable to conclude (having regard to all the circumstances) that the main purpose, or one of the main purposes, was the obtaining of a tax advantage.

Textual Amendments

F54 Word in Sch. 17 para. 37(1)(a) omitted (with application in accordance with Sch. 31 paras. 45, 46 of the amending Act) by virtue of Finance Act 2021 (c. 26), Sch. 31 paras. 38, 44

Commencement Information

I36 Sch. 17 para. 37 in force at Royal Assent for specified purposes and at 1.1.2018 otherwise, see s. 66(4)

Power to vary certain relevant periods U.K.

38 U.K. The Commissioners may by regulations amend this Part of this Schedule with a view to altering the definition of “the relevant period” for the purposes of—

• paragraph 5(6)

• paragraph 11(1)

• paragraph 12(1)

• paragraph 16(5)

• paragraph 17(2)

• paragraph 24(3)

• paragraph 25(2)

• paragraph 27(3)

• paragraph 28(3)

• paragraph 29(4)

• paragraph 30(2))

• paragraph 31(4).

Commencement Information

I37 Sch. 17 para. 38 in force at Royal Assent for specified purposes and at 1.1.2018 otherwise, see s. 66(4)