The proposals, approved on Friday, will enable the government body to subject promoters of tax avoidance schemes to conduct and monitoring notices, as well as allowing them to “name and shame” those who fail to provide adequate information.
It will also now be able to issue follower notices where it considers principles established in one case as apposite to another, and can require individuals to pay disputed tax in advance of agreeing the final position in a case.
Martin Taylor, head of client relations at Rebus Investment Solutions, said: “The achieving of Royal Assent today gives HMRC three out of four of their objectives in the latest round of the battle against tax avoidance.
“Investors and their advisers alike should watch with interest to see how these rules will be applied.
“The missing piece for HMRC is the ability to remove funds directly from bank accounts. This remains an aim for the next Finance Bill, but only time will tell if the measure can survive the barrage of accusations of HMRC becoming judge, jury and executioner with no oversight.”
He added that follower notices and accelerated payment notices will make “thousands of investors” realise how serious their position has become.
“Unfortunately many investors will have no warning before a demand arrives. If you receive either or both, contact a professional adviser without delay.”
Earlier this month, HMRC released a list of schemes it considers to be tax avoidance schemes in anticipation of receiving Royal Assent, including the controversial Ingenious Film Partners 2 scheme.
