Consultation outcome

Clamping down on promoters of tax avoidance

• From: HM Revenue & Customs
• Published: 23 March 2021
• Last updated: 20 July 2021 — See all updates

This consultation has concluded

Read the full outcome

Clamping down on promoters of tax avoidance: summary of responses

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Detail of outcome

The government has published a summary of responses to the consultation on proposals to clamp down on promoters of tax avoidance schemes.

We received 18 written responses from representative bodies, professional advisers and individuals, and met with 9 representative bodies as part of the consultation.

The government has considered these responses and has today published draft legislation and accompanying explanatory notes alongside the summary of responses document. The consultation on the draft legislation will run from 20 July to 14 September 2021.

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Original consultation

Summary

We welcome views on proposals to further tackle promoters and enablers of tax avoidance schemes and to support taxpayers to steer clear of, and exit, tax avoidance.

This consultation ran from
9:30am on 23 March 2021 to 11:45pm on 1 June 2021

Consultation description

The consultation seeks views on a range of new measures to further tackle promoters and enablers of tax avoidance including strengthened sanctions and additional HMRC powers taken at an earlier stage to disrupt the business model on which promoters rely.

The measures proposed in this consultation document are targeted at the hard core of promoters that remain in the market, and they aim to:

• clamp down on promoters who dissipate or hide their assets to avoid paying penalties by ensuring HMRC can protect its position to secure promoters’ assets to pay any relevant penalties
• tackle offshore promoters through the UK entities that support them by imposing a new penalty on the onshore entities who are associated with, and who facilitate, the activities of an offshore promoter
• give HMRC the power to ask a court to close down a company involved in promoting or enabling tax avoidance where it can be shown that they are not operating in the public interest, and disqualifying the directors at the earliest point possible
• support taxpayers to identify and exit avoidance earlier by providing more information on the products offered or sold to them by promoters, so they can make informed decisions

This consultation will be of particular interest to tax advisers, representative bodies, promoters of tax avoidance schemes, as well as businesses and individuals who may have used arrangements that seek to avoid paying tax.

Documents

Clamping down on promoters of tax avoidance

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Published 23 March 2021
Last updated 20 July 2021 + show all updates

1. 20 July 2021

   Published consultation outcome and summary of responses.

2. 23 March 2021

   First published.