Disclosure of tax avoidance schemes

Guidance - July 2006 (with effect from 1 August 2006)

Income tax, Corporation Tax, Capital Gains Tax and Stamp Duty Land Tax

This update amends some errors in the guidance published in June 2006.

 

Section

Amendments

Paragraph 6.3.2

Replace the test for a person using an in-house scheme with:

  • Do I wish to keep confidential from HMRC the way any element of the arrangements (including the way they are structured) gives rise to and secures the expected tax advantage (see paragraph 6.2.4),

  • at any time between the date of the first transaction forming part of the scheme and the date (if the scheme were disclosed) by which I would be required to notify HMRC of the reference number (see paragraph 6.2.5)?

  • Is a reason for doing so to facilitate the repeated or continued use of that element, or substantially the same element, in the future? (The guidance on "continued and repeated use" at paragraph 6.2.6, when read in the context of a scheme user, applies to this hallmark in the same way as it applies to hallmark 1((b).)

Paragraph 6.3.2

In the list of indicative factors, replace the second bullet point with:

  • The degree of co-operation to requests for information from HMRC concerning a specific scheme and the reasons for not providing information.

Paragraphs 10.2.2, 10.4.2 and 10.5.2

In the notes to these paragraphs replace:
"Where hallmark 5 applies"
with:
"Where only hallmark 5 applies"