Finance Bill (HC Bill 10)

(b) (except in a case where the monitoring notice is a replacement
monitoring notice) any person who is a client of the monitored
promoter at the time the monitoring notice takes effect.

(7) A person (“C”) is a client of a monitored promoter at the time a monitoring
5notice takes effect if during the period beginning with the date the conduct
notice mentioned in subsection (1)(b) takes effect and ending with that time the
promoter—

(a) made a firm approach to C in relation to a relevant proposal with a view
to the promoter making the proposal available for implementation by
10C or another person;

(b) made a relevant proposal available for implementation by C;

(c) took part in the organisation or management of relevant arrangements
entered into by C.

(8) A person becomes a client of a monitored promoter if the promoter does any
15of the things mentioned in paragraph (a) to (c) of subsection (7) in relation to
that person.

(9) In the case of a person falling within subsection (6)(a), notice under subsection
(1) may be given within the period of 10 days beginning with the day on which
the person first became a client of the monitored promoter if that period would
20expire at a later date than the date on which notification would otherwise be
required by virtue of subsection (4).

(10) A monitored promoter must also include in any prescribed publication or
prescribed correspondence—

(a) the information mentioned in paragraph (a) and (b) of subsection (1),
25and

(b) its promoter reference number (see section 243).

(11) Notification under subsection (1), publication under subsection (3) or inclusion
of the information required by subsection (10) is to be in such form and manner
as is prescribed.

(12) 30Where the monitoring notice mentioned in subsection (1) is a replacement
monitoring notice, the reference in subsection (4) to the end of the appeal
period is to be read as a reference to whichever is the later of the end of the
appeal period for the original monitoring notice and the date the replacement
monitoring notice takes effect.

35Allocation and distribution of promoter reference number

243 Allocation of promoter reference number

(1) Where a monitoring notice is given to a person (“the monitored promoter”)
HMRC must as soon as practicable after the end of the appeal period—

(a) allocate the monitored promoter a reference number, and

(b) 40notify the relevant persons of that number.

(2) “Relevant persons” means—

(a) the monitored promoter, and

(b) if the monitored promoter is resident outside the United Kingdom, any
person who HMRC know is an intermediary in relation to a relevant
45proposal of the monitored promoter.

(3) The “appeal period” means—

(a) the period during which an appeal could be brought against the
approval by the tribunal of the giving of the monitoring notice, or

(b) where an appeal mentioned in paragraph (a) has been brought, the
5period during which that appeal has not been finally determined,
withdrawn or otherwise disposed of.

(4) The duty in subsection (1) does not apply if the monitoring notice is set aside
following an appeal.

(5) A number allocated to a person under this section is referred to in this Part as
10a “promoter reference number”.

(6) Where the monitoring notice mentioned in subsection (1) is a replacement
monitoring notice—

(a) in subsection (1) the reference to the end of the appeal period is to be
read as a reference to whichever is the later of the end of the appeal
15period for the original monitoring notice and the date the replacement
monitoring notice takes effect, and

(b) in subsection (4) the reference to the monitoring notice is to be read as
a reference to the original monitoring notice.

244 Duty of monitored promoter to notify clients of number

(1) 20This section applies where a person who is a monitored promoter (“the
monitored promoter”) is notified under section 243 of a promoter reference
number.

(2) The monitored promoter must, within the relevant period, notify the promoter
reference number to—

(a) 25any person who has become its client at any time in the period
beginning with the day on which the monitoring notice in relation to
the monitored promoter took effect and ending with the day on which
the monitored promoter was notified of that number,

(b) any person who becomes its client after the end of the period
30mentioned in paragraph (a) but while the monitoring notice has effect,

(c) any person who the monitored promoter could reasonably be expected
to know falls within subsection (4), and

(d) any person who the monitored promoter could reasonably be expected
to know is a relevant intermediary in relation to a relevant proposal of
35the monitored promoter.

(3) A person (“C”) becomes a client of a monitored promoter if the promoter does
any of the following in relation to C—

(a) makes a firm approach to C in relation to a relevant proposal with a
view to the promoter making the proposal available for
40implementation by C or another person;

(b) makes a relevant proposal available for implementation by C;

(c) takes part in the organisation or management of relevant arrangements
entered into by C.

(4) A person falls within this subsection if during the period beginning with the
45date the conduct notice took effect and ending with the date on which the
monitoring notice took effect the person has entered into transactions forming
part of relevant arrangements and those arrangements—

(a) enable, or are likely to enable, the person to obtain a tax advantage
during the time a monitoring notice has effect, and

(b) are either relevant arrangements in relation to which the monitored
promoter is or was a promoter or implement a relevant proposal in
5relation to which the monitored promoter was a promoter.

(5) A person is a relevant intermediary in relation to a relevant proposal of a
monitored promoter if the person meets the conditions in section 229(a) to (c)
(meaning of “intermediary”) at any time while the monitoring notice in
relation to the monitored promoter has effect.

(6) 10The “relevant period” means—

(a) in the case of a person falling within subsection (2)(a), the period of 30
days beginning with the day of the notification mentioned in
subsection (1),

(b) in the case of a person falling within subsection (2)(b), the period of 30
15days beginning with the day on which the person first became a client
in relation to the monitored promoter,

(c) in the case of a person falling within subsection (2)(c), the period of 30
days beginning with the later of the day of the notification mentioned
in subsection (1) and the first day on which the monitored promoter
20could reasonably be expected to know that the person fell within
subsection (4), and

(d) in the case of a person falling within subsection (2)(d), the period of 30
days beginning with the later of the day of the notification mentioned
in subsection (1) and the first day on which the monitored promoter
25could reasonably be expected to know that the person was a relevant
intermediary in relation to a relevant proposal of the monitored
promoter.

(7) In this section “the conduct notice” means the conduct notice that the
monitored promoter failed to comply with which resulted in the monitoring
30notice being given to the monitored promoter.

(8) Subsection (2)(c) is to be ignored in a case where the monitoring notice is a
replacement monitoring notice.

245 Duty of those notified to notify others of promoter’s number

(1) In this section “notified client” means—

(a) 35a person who is notified of a promoter reference number under section
243 by reason of being a person falling within subsection (2)(b) of that
section, and

(b) a person who is notified of a promoter reference number under section
244.

(2) 40A notified client must, within 30 days of being notified as described in
subsection (1), provide the promoter reference number to any other person
who the notified client might reasonably be expected to know has become, or
is likely to have become, a client in relation to the monitored promoter
concerned at a time when the monitoring notice in relation to that monitored
45promoter had effect.

(3) A person (“C”) becomes a client of a monitored promoter if the promoter does
any of the following in relation to C—

(a) makes a firm approach to C in relation to a relevant proposal with a
view to the promoter making the proposal available for
implementation by C or another person;

(b) makes a relevant proposal available for implementation by C;

(c) 5takes part in the organisation or management of relevant arrangements
entered into by C.

(4) Where the notified client is an intermediary in relation to a relevant proposal
of the monitored promoter concerned, the notified client must also, within 30
days, provide the promoter reference number to—

(a) 10any person to whom the notified client has, since the monitoring notice
in relation to the monitored promoter concerned took effect,
communicated in the course of a business information about a relevant
proposal of the monitored promoter, and

(b) any person who the notified client might reasonably be expected to
15know has, since that monitoring notice took effect, entered into, or is
likely to enter into, transactions forming part of relevant arrangements
in relation to which that monitored promoter is a promoter.

(5) Subsection (2) or (4) does not impose a duty on a notified client to notify a
person of a promoter reference number if the notified client reasonably
20believes that the person has already been notified of the promoter reference
number (whether as a result of a duty under this section or as a result of any of
the other provision of this Part).

246 Duty of persons to notify the Commissioners

(1) If a person (“N”) is notified of a promoter reference number under section 243,
25244 or 245, N must report the number to the Commissioners if N expects to
obtain a tax advantage from relevant arrangements in relation to which the
monitored promoter to whom the reference number relates (whether that is N
or another person) is the promoter.

(2) A report under this section—

(a) 30must be made in (or, if prescribed circumstances exist, submitted with)
each tax return made by N for a period that is or includes a period for
which the arrangements enable N to obtain a tax advantage (whether
in relation to the tax to which the return relates or another tax);

(b) if no tax return falls within paragraph (a), or in the case mentioned in
35subsection (3), must contain such information, and be made in such
form and manner and within such time, as is prescribed.

(3) The case is that the tax return in which the report would (apart from this
subsection) have been made is not submitted—

(a) by the filing date, or

(b) 40if there is no filing date in relation to the tax return concerned, by such
other time that the tax return is required to be submitted by or under
any enactment.

(4) Where N expects to obtain the tax advantage referred to in subsection (1) in
respect of inheritance tax, stamp duty land tax, stamp duty reserve tax or
45petroleum revenue tax—

(a) subsection (2) does not apply in relation to that tax advantage, and

(b) a report under this section in respect of that tax must be in such form
and manner and contain such information and be made within such
time as is prescribed.

(5) Where the relevant arrangements referred to in subsection (1) give rise to N
5making a claim under section 261B of TCGA 1992 (treating trade loss as CGT
loss) or for loss relief under Part 4 of ITA 2007 and that claim is not contained
in a tax return, a report under this section must also be made in that claim.

(6) In this section “tax return” means any of the following—

(a) a return under section 8 of TMA 1970 (income tax and capital gains tax:
10personal return);

(b) a return under section 8A of TMA 1970 (income tax and capital gains
tax: trustee’s return);

(c) a return under section 12AA of TMA 1970 (income tax and corporation
tax: partnership return);

(d) 15a company tax return under paragraph 3 of Schedule 18 to the FA 1998
(company tax return);

(e) a return under section 159 or 160 of FA 2013 (returns and further
returns for annual tax on enveloped dwellings).

Obtaining information and documents

247 20Meaning of “monitored proposal” and “monitored arrangements”

(1) For the purposes of this Part a relevant proposal in relation to which a person
(“P”) is a promoter is a “monitored proposal” in relation to P if any of the
following dates fell on or after the date on which a monitoring notice took
effect—

(a) 25the date on which P first made a firm approach to another person in
relation to the relevant proposal;

(b) the date on which P first made the relevant proposal available for
implementation by any other person;

(c) the date on which P first became aware of any transaction forming part
30of the proposed arrangements being entered into by any person.

(2) For the purposes of this Part relevant arrangements in relation to which a
person (“P”) is a promoter are “monitored arrangements” in relation to P if—

(a) P was by virtue of section 228(2)(b) or (c) a promoter in relation to a
relevant proposal which was implemented by the arrangements and
35any of the following fell on or after the date on which the monitoring
notice took effect—

(i) the date on which P first made a firm approach to another
person in relation to the relevant proposal;

(ii) the date on which P first made the relevant proposal available
40for implementation by any other person;

(iii) the date on which P first became aware of any transaction
forming part of the proposed arrangements being entered into
by any person,

(b) the date on which P first took part in designing, organising or
45managing the arrangements fell on or after the date on which a
monitoring notice took effect, or

(c) the arrangements enable, or are likely to enable, the person who has
entered into transactions forming them to obtain the tax advantage by
reason of which they are relevant arrangements, at any time on or after
the date on which a monitoring notice took effect.

248 5Power to obtain information and documents

(1) An authorised officer, or an officer of Revenue and Customs with the approval
of an authorised officer, may by notice in writing require any person (“P”) to
whom this section applies—

(a) to provide information, or

(b) 10to produce a document,

if the information or document is reasonably required by the officer for any of
the purposes in subsection (3).

(2) This section applies to—

(a) any person who is a monitored promoter, and

(b) 15any person who is a relevant intermediary in relation to a monitored
proposal of a monitored promoter,

and in either case that monitored promoter is referred to below as “the relevant
monitored promoter”.

(3) The purposes mentioned in subsection (1) are—

(a) 20considering the possible consequences of implementing a monitored
proposal of the relevant monitored promoter for the tax position of
persons implementing the proposal,

(b) checking the tax position of any person who the officer reasonably
believes has implemented a monitored proposal of the relevant
25monitored promoter, or

(c) checking the tax position of any person who the officer reasonably
believes has entered into transactions forming monitored
arrangements of the relevant monitored promoter.

(4) A person is a “relevant intermediary” in relation to a monitored proposal if the
30person meets the conditions in section 229(a) to (c) (meaning of
“intermediary”) in relation to the proposal at any time after the person has been
notified of a promoter reference number of a person who is a promoter in
relation to the proposal.

(5) In this section “checking” includes carrying out an investigation or enquiry of
35any kind.

(6) In this section “tax position”, in relation to a person, means the person’s
position as regards any tax, including the person’s position as regards—

(a) past, present and future liability to pay any tax,

(b) penalties and other amounts that have been paid, or are or may be
40payable, by or to the person in connection with any tax,

(c) claims, elections, applications and notices that have been or may be
made or given in connection with the person’s liability to pay any tax,

(d) deductions or repayments of tax, or of sums representing tax, that the
person is required to make—

(i) 45under PAYE regulations, or

(ii) by or under any other provision of the Taxes Acts, and

(e) the withholding by the person of another person’s PAYE income (as
defined in section 683 of ITEPA 2003).

(7) In this section the reference to the tax position of a person—

(a) includes the tax position of a company that has ceased to exist and an
5individual who has died, and

(b) is to the person’s tax position at any time or in relation to any period.

(8) A notice under subsection (1) which is given for the purpose of checking the
tax position of a person mentioned in subsection (3)(b) or (c) may not be given
more than 4 years after the person’s death.

(9) 10A notice under subsection (1) may specify or describe the information or
documents to be provided or produced.

(10) Information or a document required as a result of a notice under subsection (1)
must be provided or produced within—

(a) the period of 10 days beginning with the day on which the notice was
15given, or

(b) such longer period as the officer who gives the notice may direct.

249 Tribunal approval for certain uses of power under section 248

(1) An officer of Revenue and Customs may not, without the approval of the
tribunal, give a notice under section 248 requiring a person (“A”) to provide
20information or produce a document which relates (in whole or in part) to a
person who is neither A nor an undertaking in relation to which A is a parent
undertaking.

(2) An officer of Revenue and Customs may apply to the tribunal for the approval
required by subsection (1); and an application for approval may be made
25without notice.

(3) The tribunal may approve the giving of the notice only if—

(a) the application for approval is made by, or with the agreement of, an
authorised officer,

(b) the tribunal is satisfied that, in the circumstances, the officer giving the
30notice is justified in doing so,

(c) the person to whom the notice is to be given has been informed that the
information or documents referred to in the notice are required and
given a reasonable opportunity to make representations to an officer of
Revenue and Customs, and

(d) 35the tribunal has been given a summary of any representations made by
that person.

(4) Where a notice is given under section 248 with the approval of the tribunal, it
must state that it is given with that approval.

(5) Paragraphs (c) and (d) of subsection (3) do not apply to the extent that the
40tribunal is satisfied that taking the action specified in those paragraphs might
prejudice the assessment or collection of tax.

(6) In subsection (1) “parent undertaking” and “undertaking” have the same
meaning as in the Companies Acts (see section 1161 and 1162 of, and Schedule
7 to, the Companies Act 2006).

(7) A decision of the tribunal under this section is final (despite the provisions of
sections 11 and 13 of the Tribunals, Courts and Enforcement Act 2007).

250 Ongoing duty to provide information following HMRC notice

(1) An authorised officer, or an officer of Revenue and Customs with the approval
5of an authorised officer, may give a notice to a person (“P”) in relation to whom
a monitoring notice has effect.

(2) A person to whom a notice is given under subsection (1) must provide
prescribed information and produce prescribed documents relating to—

(a) all the monitored proposals and all the monitored arrangements in
10relation to which the person is a promoter at the time of the notice, and

(b) all the monitored proposals and all the monitored arrangements in
relation to which the person becomes a promoter after that time.

(3) The duty under subsection (2)(b) does not apply in relation to any proposals or
arrangements in relation to which the person first becomes a promoter after the
15monitoring notice ceases to have effect.

(4) A notice under subsection (1) must specify the time within which information
must be provided or a document produced and different times may be
specified for different cases.

251 Duty of person dealing with non-resident monitored promoter

(1) 20This section applies where a monitored promoter who is resident outside the
United Kingdom has failed to comply with a duty under section 248 or 250 to
provide information about a monitored proposal or monitored arrangements.

(2) An authorised officer, or an officer of Revenue and Customs with the approval
of an authorised officer, may give a notice to a relevant person which—

(a) 25specifies or describes the information which the monitored promoter
has failed to provide, and

(b) requires the person to provide the information.

(3) A “relevant person” means—

(a) any person who is an intermediary in relation to the monitored
30proposal concerned, and

(b) any person (“A”) to whom the monitored promoter has made a firm
approach in relation to the monitored proposal concerned with a view
to making the proposal available for implementation by a person other
than A.

(4) 35If an authorised officer is not aware of any person to whom a notice could be
given under subsection (2) the authorised officer, or an officer of Revenue and
Customs with the approval of the authorised officer, may give a notice to any
person who has implemented the proposal which—

(a) specifies or describes the information which the monitored promoter
40has failed to provide, and

(b) requires the person to provide the information.

(5) If the duty mentioned in subsection (1) relates to monitored arrangements an
authorised officer, or an officer of Revenue and Customs with the approval of
an authorised officer, may give a notice to any person who has entered into any
45transaction forming part of the monitored arrangements concerned which—

(a) specifies or describes the information which the monitored promoter
has failed to provide, and

(b) requires the person to provide the information.

(6) A notice under this section may be given only if the officer giving the notice
5reasonably believes that the person to whom the notice is given is able to
provide the information requested.

(7) Information required as a result of a notice under this section must be provided
within—

(a) the period of 10 days beginning with the day on which the notice was
10given, or

(b) such longer period as the officer who gives the notice may direct.

252 Monitored promoters: duty to provide information about clients

(1) An authorised officer, or an officer of Revenue and Customs with the approval
of an authorised officer, may give notice to a person in relation to whom a
15monitoring notice has effect (“the monitored promoter”).

(2) A person to whom a notice is given under subsection (1) must, for each relevant
period, give the officer who gave the notice the information set out in
subsection (9) in respect of each person who was its client with reference to that
relevant period (see subsections (5) to (8)).

(3) 20Each of the following is a “relevant period”—

(a) the calendar quarter in which the notice under subsection (1) was given
but not including any time before the monitoring notice takes effect,

(b) the period (if any) beginning with the date the monitoring notice takes
effect and ending immediately before the beginning of the period
25described in paragraph (a), and

(c) each calendar quarter after the period described in paragraph (a) but
not including any time after the monitoring notice ceases to have effect.

(4) Information required as a result of a notice under subsection (1) must be
given—

(a) 30within the period of 30 days beginning with the end of the relevant
period concerned, or

(b) in the case of a relevant period within subsection (3)(b), within the
period of 30 days beginning with the day on which the notice under
subsection (1) was given if that period would expire at a later time than
35the period given by paragraph (a).

(5) A person (“C”) is a client of the monitored promoter with reference to a
relevant period if—

(a) the promoter did any of the things mentioned in subsection (6) in
relation to C at any time during that period, or

(b) 40the person falls within subsection (7).

(6) Those things are that the monitored promoter—

(a) made a firm approach to C in relation to a relevant proposal with a view
to the promoter making the proposal available for implementation by
C or another person;

(b) 45made a relevant proposal available for implementation by C;

(c) took part in the organisation or management of relevant arrangements
entered into by C.

(7) A person falls within this subsection if the person has entered into transactions
forming part of relevant arrangements and those arrangements—

(a) 5enable the person to obtain a tax advantage either in that relevant
period or a later relevant period, and

(b) are either relevant arrangements in relation to which the monitored
promoter is or was a promoter, or implement a relevant proposal in
relation to which the monitored promoter was a promoter.

(8) 10But a person is not a client of the monitored promoter with reference to a
relevant period if—

(a) the person has previously been a client of the monitored promoter with
reference to a different relevant period,

(b) the promoter complied with the duty in subsection (2) in respect of the
15person for that relevant period, and

(c) the information provided as a result of complying with that duty
remains accurate.

(9) The information mentioned in subsection (2) is—

(a) the person’s name and address, and

(b) 20such other information about the person as may be prescribed.

(10) Where the monitoring notice mentioned in subsection (1) is a replacement
monitoring notice, subsection (5)(b) does not impose a duty on the monitored
promoter concerned to provide information about a person who has entered
into transactions forming part of relevant arrangements (as described in
25subsection (7)) if the monitored promoter reasonably believes that information
about that person has, in relation to those arrangements, already been
provided under the original monitoring notice.

253 Intermediaries: duty to provide information about clients

(1) An authorised officer, or an officer of Revenue and Customs with the approval
30of an authorised officer, may give notice to a person (“the intermediary”) who
is an intermediary in relation to a relevant proposal which is a monitored
proposal of a person in relation to whom a monitoring notice has effect (“the
monitored promoter”).

(2) A person to whom a notice is given under subsection (1) must, for each relevant
35period, give the officer who gave the notice the information set out in
subsection (7) in respect of each person who was its client with reference to that
relevant period (see subsections (5) to (6)).

(3) Each of the following is a “relevant period”—

(a) the calendar quarter in which the notice under subsection (1) was given
40but not including any time before the intermediary was first notified
under section 243, 244 or 245 of the promoter reference number of the
monitored promoter,

(b) the period (if any) beginning with the date of the notification under
section 243, 244 or 245 and ending immediately before the beginning of
45the period described in paragraph (a), and