How we will achieve our strategy

We will quickly and expertly prevent and close down avoidance by effective legislation

By working collaboratively across HMRC and with HMT, skilled tax technical resources will minimise avoidance opportunities in new legislation. New measures will be designed to be robust against avoidance and, where necessary, further testing by avoidance experts will be conducted. Technical resources will also be directed at assessing vulnerabilities within existing legislation, to predict and prevent the evolution of tax avoidance. We will review the need for and, if necessary, we will seek more effective powers for dealing with avoidance. It is for Treasury Ministers ultimately to decide on policy changes.

We will engage with our customers about how we address avoidance

We will share with our customers our internal guidance about what kind of indicators would lead us to examine a case from an avoidance perspective. Our general policy to consult whenever possible on new measures will extend to anti-avoidance measures.

We will know what avoidance schemes and bespoke arrangements are being marketed and used

The disclosure rules will provide increased transparency and intelligence, enabling us to discover avoidance more quickly. HMRC will continue to gather intelligence through consultation both formally and informally across the department and with HMT, taxpayers and tax practitioners. New databases will ensure that all intelligence on avoidance activity is captured centrally and shared appropriately.

We will know which organisations and individuals are more likely to carry out avoidance and organise our resources accordingly

Increased intelligence capabilities, supported by greater transparency will mean that HMRC will be more likely to spot avoidance than now. Using new databases and tools for data matching HMRC will be able to draw on and share an extensive source of high quality information to ensure high-risk taxpayers are identified.

We will treat those who avoid their tax obligations as higher risk than organisations and individuals who do not

We will encourage and help taxpayers to meet their obligations. Where HMRC identifies a risk that avoidance is present, we will apply our investigation, litigation and policy resources to match that risk.

We will be proactive at challenging avoidance by investigation and effective litigation

HMRC will develop a climate in which avoiders face increased risks of investigation and litigation. AAG will lead on HMRC’s avoidance scheme resolution policy, setting out a consistent approach to help achieve a long-term change in taxpayer behaviour. This approach will include seeking penalties in appropriate circumstances. Avoidance arrangements which may involve dishonesty or criminality will be identified and reviewed for potential criminal investigation.

We will take a strategic approach in litigating avoidance cases

By using project management techniques we will identify taxpayers who have undertaken similar or connected avoidance arrangements. Protective measures will be put in place to prevent loss of tax pending the outcome of lead cases. Following the successful outcome of litigation, HMRC will ensure that the collection of tax outstanding is maximised. This way of working will promote a consistent approach for each scheme and across all schemes.