The rules are targeted at obtaining details of new avoidance and there are a series of tests which the promoter is required to consider in deciding whether a disclosure is necessary. These tests are designed to remove the obligation to disclose everyday tax planning arrangements and are explained in detail within part 4 of the Guidance Notes (see http://www.hmrc.gov.uk/aiu/index.htm). The tests are as follows and disclosure is required if the answer is yes to all the following questions:
(This includes IT, CGT, and CT)
(It does not have to be the main benefit - for example a scheme designed to avoid NIC is also likely to provide an IT advantage)
For employment planning these are:
The regulations also specify the following are not employment products (unless they are part of a wider avoidance arrangement):
Meanings of these terms are provided at 4.13 et seq in the Guidance Notes.
(This is a hypothetical question. It does not matter that a premium fee was not charged or that no confidentiality agreement was made. Further details of these tests is given within para 4.2 of the Guidance Notes)
Disclosures have to be made to the AAG on prescribed forms (see the forms section of http://www.hmrc.gov.uk/aiu/index.htm) depending on who is making the disclosure. In every instance the disclosure must contain:
The information provided must be explained in sufficient detail for an Officer of the Board to understand the tax advantage arising.
