According to the Tax-News.com website, the Under the Promoters of Tax Avoidance legislation has been re-drawn following concerns that the initial legislation, produced earlier this year, did not suitably define the term “promoter”.
The website has suggested that the new ruling now excludes companies that provide in-house taxation services for those in the same group, and advisers – such as accountants or lawyers – who are not involved in the design of the tax avoidance scheme.
Those who are categorised as promoters could therefore be fined up to £1m (£1.6m/€1.3m) by HMRC.
A proposal included in the Finance Act 2014 received Royal Assent in July when it came into effect retrospectively.
As well as being monitored by HMRC, tax planning companies must declare that they are providers of avoidance schemes on their website and issue clients with a promoter reference number, which clients must use on their tax returns and other material sent to HMRC.
An adviser risks being fined if they do not follow these rules.
