The National Insurance Contributions (Application of Part 7 of the Finance Act 2004) (Amendment) Regulations 2015

Amendment of the National Insurance Contributions (Application of Part 7 of the Finance Act 2004) Regulations 2012

7.  In regulation 22 (notification under Part 2)—

(a) in paragraph (1)(a)(i), for “or (c)” substitute “, (c) or (ca)”;

(b) in paragraph (2), after sub-paragraph (c) insert—

“(ca) regulation 11A (duty to provide further information requested by HMRC),”;

(c) in paragraph (3), at the end of the table insert—

“A failure to comply with regulation 11A

The first day after the end of the period within which the person must comply with regulation 11A”;

(d) in paragraph (4)(a)—

(i) for “person’s” substitute “promoter’s”;

(ii) after “(3)” insert “or regulation 11A”;

(iii) for “person” substitute “promoter”;

(e) in paragraph (4)(b)—

(i) before “person’s” insert “relevant”;

(ii) for “or 11” substitute “, 11 or 11A”;

(iii) before “person” insert “relevant”;

(f) after paragraph 4, insert—

“(4A) In paragraph 4—

(a) “promoter” has the same meaning as in regulation 7, and

(b) “relevant person” means a person who enters into any transaction forming part of notifiable contribution arrangements within the meaning of regulation 5.”;

(g) after paragraph 10, insert—

“(10A) Where a person fails to comply with—

(a) regulation 10 and the promoter for the purposes of that regulation is a monitored promoter for the purposes of Part 5 of the Finance Act 2014(1), or

(b) regulation 11 and the notifiable contribution arrangements for the purposes of that regulation are arrangements of such a monitored promoter,

then for the purposes of regulation 23 (interpretation) legal advice which the person took into account is to be disregarded in determining whether the person had a reasonable excuse, if the advice was given or procured by that monitored promoter.

(10B) In determining for the purpose of regulation 23 whether or not a person who is a monitored promoter within the meaning of Part 5 of the Finance Act 2014 had a reasonable excuse for a failure to do anything required to be done under a provision mentioned in paragraph (2), reliance on legal advice is to be taken automatically not to constitute a reasonable excuse if either—

(a) the advice was not based on a full and accurate description of the facts, or

(b) the conclusions in the advice that the person relied on were unreasonable.”.

(1)

2014 c. 26; Part 5 (Promoters of Tax Avoidance Schemes) is applied to Class 1, 1A, 1B and certain Class 2 contributions by Part 2 of Schedule 2 to the National Insurance Contributions Act 2015 (c. 5).