Finance Bill (HC Bill 116)

Duties of promoter in relation to notifiable proposals or notifiable arrangements

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.

(2) 5In 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) 10the 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.

12 (1) 15A 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.

(2) In sub-paragraph (1) “the relevant period” is the period of 31 days beginning
20with 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).

13 (1) This paragraph applies where a person complies with paragraph 11(1) in
25relation to a notifiable proposal for arrangements and another person is—

(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) 30a 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
35the 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) 40the other person holds the information provided to HMRC in
compliance with paragraph 11(1).

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

(a) a promoter in relation to a notifiable proposal for arrangements
45which 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
5the 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) 10the other person holds the information provided to HMRC in
compliance with paragraph 12(1).

15 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
15provide 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.

Duty of promoter: supplemental information

16 (1) This paragraph applies where—

(a) 20a 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
25specified 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) 30form 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
35of 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.

Duty of person dealing with promoter outside United Kingdom

17 (1) 40This paragraph applies where a person enters into any transaction forming
part of any notifiable arrangements in relation to which—

(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
45prescribed 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
5arrangements discharges the person’s duty under sub-paragraph (1).

Duty of parties to notifiable arrangements not involving promoter

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
10paragraph 11(1), 12(1) or 17(2).

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

Duty to provide further information requested by HMRC

19 (1) This paragraph applies where—

(a) 15a 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
20provided 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) 25documents 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) 30such longer period as HMRC may direct.

20 (1) This paragraph applies where HMRC—

(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
35documents 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
40information 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.

Duty of promoters to provide updated information

21 (1) 5This paragraph applies where—

(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
10the 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
15relation 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
20days 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
25is 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.

30Arrangements to be given reference number

22 (1) Where a person (P) complies or purports to comply with paragraph 11(1),
12(1), 17(2) or 18(2) in relation to any notifiable proposal or notifiable
arrangements, HMRC may within 90 days allocate a reference number to the
notifiable arrangements or, in the case of a notifiable proposal, to the
35proposed notifiable arrangements.

(2) If HMRC do so it must notify the number to P and (where the person is one
who has complied or purported to comply with paragraph 11(1) or 12(1)), to
any other person—

(a) who is a promoter in relation to—

(i) 40the notifiable proposal (or arrangements implementing the
notifiable proposal), or

(ii) the notifiable arrangements (or proposal implemented by the
notifiable arrangements), and

(b) whose identity and address has been notified to HMRC by P.

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

(4) 5In this Part of this Schedule “reference number”, in relation to any notifiable
arrangements, means the reference number allocated under this paragraph.

Duty of promoter to notify client of number

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
10person (“the client”) in connection with the arrangements.

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

(a) 15the 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
20which 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) 25Those 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
30substantially 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) 35HMRC 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.

Duty of client to notify parties of number

24 (1) In this paragraph “client” means a person to whom a person who is a
40promoter in relation to notifiable arrangements or a notifiable proposal is
providing (or has provided) services in connection with the arrangements or
proposal.

(2) Sub-paragraph (3) applies where the client receives prescribed information
relating to the reference number allocated to the arrangements or proposed
45arrangements,

(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) 5who 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) 10the day on which the client first becomes aware of any transaction
forming part of the notifiable arrangements or proposed notifiable
arrangements, and

(b) the day on which the prescribed information is notified to the client
by the promoter under paragraph 23.

(5) 15HMRC may give notice that, in relation to notifiable arrangements or a
notifiable 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) 20For 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).

Duty of client to provide information to promoter

25 (1) 25This paragraph applies where a person who is a promoter in relation to
notifiable arrangements has provided a person (“the client”) with the
information prescribed under paragraph 23(2).

(2) The client must, within the relevant period, provide the promoter with
prescribed information relating to the client.

(3) 30In 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
35the arrangements.

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

Duty of parties to notifiable arrangements to notify HMRC of number, etc

26 (1) Any person (P) who is a party to any notifiable arrangements must provide
40HMRC with prescribed information relating to—

(a) any reference number notified to P under paragraph 23 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
any notifiable arrangements 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) 5in 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) 10in 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) 15HMRC may give notice that, in relation to notifiable 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.

20Duty of promoter to provide details of clients

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—

(a) the promoter is subject to the reference number information
25requirement, or

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

(2) 30For the purposes of this paragraph “the reference number information
requirement” is the requirement under paragraph 23(2) to provide to the
client prescribed information relating to the reference number allocated to
the notifiable arrangements.

(3) The promoter must, within the prescribed period after the end of the
35relevant period, provide HMRC with prescribed information in relation to
the client.

(4) In sub-paragraph (3) “the relevant period” means such period (during which
the promoter is or would be subject to the reference number information
requirement) as is prescribed.

(5) 40The 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.

Enquiry following disclosure of client details

28 (1) This paragraph applies where—

(a) a person who is a promoter in relation to notifiable arrangements has
provided HMRC with information in relation to a person (“the
client”) under paragraph 27(3) (duty to provide client details), and

(b) HMRC suspect that a person other than the client is or is likely to be
5a party to the arrangements.

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

(3) 10The promoter 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
15with the day on which the promoter receives the notice under sub-
paragraph (2).

Pre-disclosure enquiry

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
20may by written notice require P to state—

(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) 25 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
30not 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) 35P 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
40with the day on which the notice under sub-paragraph (1) is issued.

Reasons for non-disclosure: supporting information

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
45documents in support of the reasons.

(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) 5In 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
10paragraph 29(1)(b).

Provision of information to HMRC by introducers

31 (1) This paragraph applies where HMRC suspect—

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

(b) that the proposal may be notifiable.

(2) 15HMRC 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
20made 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) 25In 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.

Legal professional privilege

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

(2) 30In 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.

Information

33 (1) 35This paragraph applies where a person is required to provide information
under paragraph 23(2) or 24(3).

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

(3) 40HMRC 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.

34 (1) HMRC may specify the form and manner in which information required to
5be provided by or under any of the information provisions must be provided
if the provision is to be complied with.

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

35 No duty of confidentiality or other restriction on disclosure (however
10imposed) 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.

36 (1) HMRC may publish information about—

(a) 15any notifiable arrangements, or proposed notifiable arrangements,
to which a reference number is allocated under paragraph 22;

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

(2) 20The 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), that is prescribed
information for the purposes of paragraph 11, 12, 17 or 18;

(b) any ruling of a court or tribunal relating to any such arrangements or
25person (in that person‘s capacity as a promoter in relation to a
notifiable proposal or arrangements);

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

(d) any other information that HMRC considers it appropriate to
30publish for the purpose of identifying arrangements within sub-
paragraph (1)(a) or a person within sub-paragraph (1)(b).

(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
35person who enters into a transaction forming part of notifiable arrangements
within sub-paragraph (1)(a).

(5) But where a person who is a promoter within sub-paragraph (1)(b) 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
40so far as relating to the person‘s activities as a promoter.

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

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

(b) give the person reasonable opportunity to make representations
45about whether it should be published.

37 (1) This paragraph applies if—