Finance Act 2014

• (c) an event occurs such that either—

• (i) there is a relevant defeat in relation to Q and the defeated arrangements, or

• (ii) the condition in sub-paragraph (i) would be met if Q had not ceased to exist,

• (d) at the time of that event a person (“P”) is carrying on a business as a promoter (or is carrying on what would be such a business under the condition in paragraph 3(2)), and

• (e) Condition 1 or 2 is met in relation to Q and P.

• (2) The event is treated for all purposes of this Part of this Act as a relevant defeat in relation to P and the defeated arrangements (whether or not it is also a relevant defeat in relation to Q, and regardless of whether or not P existed at any time when those arrangements were promoted arrangements in relation to Q).

• (3) Condition 1 is that—

• (a) P is not an individual,

• (b) at a time when the defeated arrangements were promoted arrangements in relation to Q—

• (i) P was a relevant body controlled by Q, or

• (ii) Q was a relevant body controlled by P, and

• (c) at the time of the event mentioned in sub-paragraph (1)(c)—

• (i) Q is a relevant body controlled by P,

• (ii) P is a relevant body controlled by Q, or

• (iii) P and Q are relevant bodies controlled by a third person.

• (4) Condition 2 is that—

• (a) P and Q are relevant bodies,

• (b) at a time when the defeated arrangements were promoted arrangements in relation to Q, a third person (“C”) controlled Q, and

• (c) C controls P at the time of the event mentioned in sub-paragraph (1)(c).

• (5) For the purposes of sub-paragraphs (3)(b) and (4)(b), the question whether arrangements are promoted arrangements in relation to Q at any time is to be determined on the assumption that the reference to “design” in paragraph (b) of section 235(3) (definition of “promoter” in relation to relevant arrangements) is omitted.

Deemed defeat notices

18

• (1) This paragraph applies if—

• (a) an authorised officer becomes aware at any time (“the relevant time”) that a relevant defeat has occurred in relation to a person ( “ P ”) who is carrying on a business as a promoter,

• (b) there have occurred, more than 3 years before the relevant time—

• (i) one third party defeat, or

• (ii) two third party defeats, and

• (c) conditions A1 and B1 (in a case within paragraph (b)(i)), or conditions A2 and B2 (in a case within paragraph (b)(ii)), are met.

• (2) Where this paragraph applies by virtue of sub-paragraph (1)(b)(i), this Part of this Act has effect as if an authorised officer had (with due authority), at the time of the time of the third party defeat, given P a single defeat notice under section 241A(2) in respect of it.

• (3) Where this paragraph applies by virtue of sub-paragraph (1)(b)(ii), this Part of this Act has effect as if an authorised officer had (with due authority), at the time of the second of the two third party defeats, given P a double defeat notice under section 241A(3) in respect of the two third party defeats.

• (4) Section 241A(8) has no effect in relation to a notice treated as given as mentioned in sub-paragraph (2) or (3).

• (5) Condition A1 is that—

• (a) a conduct notice or a single or double defeat notice has been given to the other person (see sub-paragraph (9)) in respect of the third party defeat,

• (b) at the time of the third party defeat an authorised officer would have had power by virtue of paragraph 17 to give P a defeat notice in respect of the third party defeat, had the officer been aware that it was a relevant defeat in relation to P, and

• (c) so far as the authorised officer mentioned in sub-paragraph (1)(a) is aware, the conditions for giving P a defeat notice in respect of the third party defeat have never been met (ignoring this paragraph).

• (6) Condition A2 is that—

• (a) a conduct notice or a single or double defeat notice has been given to the other person (see sub-paragraph (9)) in respect of each, or both, of the third party defeats,

• (b) at the time of the second third party defeat an authorised officer would have had power by virtue of paragraph 17 to give P a double defeat notice in respect of the third party defeats, had the officer been aware that either of the third party defeats was a relevant defeat in relation to P, and

• (c) so far as the authorised officer mentioned in sub-paragraph (1)(a) is aware, the conditions for giving P a defeat notice in respect of those third party defeats (or either of them) have never been met (ignoring this paragraph).

• (7) Condition B1 is that, had an authorised officer given P a defeat notice in respect of the third party defeat at the time of that relevant defeat, that defeat notice would still have effect at the relevant time (see sub-paragraph (1)).

• (8) Condition B2 is that, had an authorised officer given P a defeat notice in respect of the two third party defeats at the time of the second of those relevant defeats, that defeat notice would still have effect at the relevant time.

• (9) In this paragraph “third party defeat” means a relevant defeat which has occurred in relation to a person other than P.

Meaning of “relevant body” and “control”

19

• (1) In this Part of this Schedule “relevant body” means—

• (a) a body corporate, or

• (b) a partnership.

• (2) For the purposes of this Part of this Schedule a person controls a body corporate if the person has power to secure that the affairs of the body corporate are conducted in accordance with the person's wishes—

• (a) by means of the holding of shares or the possession of voting power in relation to the body corporate or any other relevant body,

• (b) as a result of any powers conferred by the articles of association or other document regulating the body corporate or any other relevant body, or

• (c) by means of controlling a partnership.

• (3) For the purposes of this Part of this Schedule a person controls a partnership if the person is a controlling member or the managing partner of the partnership.

• (4) In this paragraph “controlling member” has the same meaning as in Schedule 36 (partnerships).

• (5) In this paragraph “managing partner”, in relation to a partnership, means the member of the partnership who directs, or is on a day-to-day level in control of, the management of the business of the partnership.

PART 4 — Meeting section 237A conditions: bodies corporate and partnerships

Relevant bodies controlled etc by other persons treated as meeting section 237A condition

20

• (1) A relevant body is treated as meeting a section 237A condition at the section 237A(2) relevant time if any of Conditions A to C is met.

• (2) Condition A is that—

• (a) a person met the section 237A condition at a time when the person was a promoter, and

• (b) the person controls or has significant influence over the relevant body at the section 237A(2) relevant time.

• (3) Condition B is that—

• (a) a person met the section 237A condition at a time when the person controlled or had significant influence over the relevant body,

• (b) the relevant body was a promoter at that time, and

• (c) the person controls or has significant influence over the relevant body at the section 237A(2) relevant time.

• (4) Condition C is that—

• (a) two or more persons together controlled or had significant influence over the relevant body at a time when one of those persons met the section 237A condition,

• (b) the relevant body was a promoter at that time, and

• (c) those persons together control or have significant influence over the relevant body at the section 237A(2) relevant time.

• (5) Sub-paragraph (1) does not apply where the person referred to in sub-paragraph (2)(a), (3)(a), or (4)(a) as meeting a section 237A condition is an individual.

• (6) For the purposes of sub-paragraph (2) it does not matter whether the relevant body existed at the time referred to in sub-paragraph (2)(a).

Persons who control etc a relevant body treated as meeting a section 237A condition

21

• (1) If at a time when a person controlled or had significant influence over a relevant body—

• (a) the relevant body met a section 237A condition, and

• (b) the relevant body, or another relevant body which the person controlled or had significant influence over, was a promoter,

the person is treated as meeting the section 237A condition at the section 237A(2) relevant time.

• (2) It does not matter whether any relevant body referred to sub-paragraph (1) exists at the section 237A(2) relevant time.

Relevant bodies controlled etc by the same person treated as meeting a section 237A condition

22

• (1) If—

• (a) a person controlled or had significant influence over a relevant body at a time when it met a section 237A condition, and

• (b) at that time that body, or another relevant body which the person controlled or had significant influence over, was a promoter,

any relevant body which the person controls or has significant influence over at the section 237A(2) relevant time is treated as meeting the section 237A condition at the section 237A(2) relevant time.

• (2) If—

• (a) two or more persons together controlled or had significant influence over a relevant body at a time when it met a section 237A condition, and

• (b) at that time that body, or another relevant body which those persons together controlled or had significant influence over, was a promoter,

any relevant body which those persons together control or have significant influence over at the section 237A(2) relevant time is treated as meeting the section 237A condition at the section 237A(2) relevant time.

• (3) It does not matter whether—

• (a) a relevant body referred to in sub-paragraph (1)(a) or (b) or (2)(a) or (b) exists at the section 237A(2) relevant time, or

• (b) a relevant body existing at the section 237A(2) relevant time existed at the time referred to in sub-paragraph (1)(a) or (2)(a).

Interpretation

23

• (1) In this Part of this Schedule—

• “control” and “significant influence” have the same meanings as in Part 4 of Schedule 34 (see paragraph 13A(5) to (11));references to a person being a promoter are to the person carrying on business as a promoter;

• “relevant body” has the same meaning as in Part 3 of this Schedule;

• “section 237A(2) relevant time” means the time referred to in section 237A(2);

• “section 237A condition” means any of the conditions in section 237A(11), (12) and (13).

• (2) For the purposes of paragraphs 20 to 22, the condition in section 237A(11) (occurrence of 3 relevant defeats in the 3 years ending with the relevant time) is taken to have been met by a person at any time if at least 3 relevant defeats have occurred in relation to the person in the period of 3 years ending with that time.

PART 5 — Supplementary

“Adjustments”

24

In this Schedule “adjustments” means any adjustments, whether by way of an assessment, the modification of an assessment or return, the amendment or disallowance of a claim, the entering into of a contract settlement or otherwise (and references to “making” adjustments accordingly include securing that adjustments are made by entering into a contract settlement).

Meaning of “avoidance-related rule”

25

• (1) In this Schedule “avoidance-related rule” means a rule in Category 1 or 2.

• (2) A rule is in Category 1 if—

• (a) it refers (in whatever terms) to the purpose or main purpose or purposes of a transaction, arrangements or any other action or matter, and

• (b) to whether or not the purpose in question is or involves the avoidance of tax or the obtaining of any advantage in relation to tax (however described).

• (3) A rule is also in Category 1 if it refers (in whatever terms) to—

• (a) expectations as to what are, or may be, the expected benefits of a transaction, arrangements or any other action or matter, and

• (b) whether or not the avoidance of tax or the obtaining of any advantage in relation to tax (however described) is such a benefit.

For the purposes of paragraph (b) it does not matter whether the reference is (for instance) to the “sole or main benefit” or “one of the main benefits” or any other reference to a benefit.

• (4) A rule falls within Category 2 if as a result of the rule a person may be treated differently for tax purposes depending on whether or not purposes referred to in the rule (for instance the purposes of an actual or contemplated action or enterprise) are (or are shown to be) commercial purposes.

• (5) For example, a rule in the following form would fall within Category 1 and within Category 2—

Section X does not apply to a company in respect of a transaction if the company shows that the transaction meets Condition A or B. Condition A is that the transaction is effected— (a) for genuine commercial reasons, or (b) in the ordinary course of managing investments. Condition B is that the avoidance of tax is not the main object or one of the main objects of the transaction.

“DOTAS arrangements”

26

• (1) For the purposes of this Schedule arrangements are “DOTAS arrangements” at any time if at that time a person—

• (a) has provided, information in relation to the arrangements under section 308(3), 309 or 310 of FA 2004, or

• (b) has failed to comply with any of those provisions in relation to the arrangements.

• (2) But for the purposes of this Schedule “DOTAS arrangements” does not include arrangements in respect of which HMRC has given notice under section 312(6) of FA 2004 (notice that promoters not under duty to notify client of reference number).

• (3) For the purposes of sub-paragraph (1) a person who would be required to provide information under subsection (3) of section 308 of FA 2004—

• (a) but for the fact that the arrangements implement a proposal in respect of which notice has been given under subsection (1) of that section, or

• (b) but for subsection (4A), (4C) or (5) of that section,

is treated as providing the information at the end of the period referred to in subsection (3) of that section.

“Disclosable Schedule 11A VAT arrangements”

27

For the purposes of paragraph 26A arrangements are “disclosable Schedule 11A VAT arrangements” at any time if at that time—

• (a) a person has complied with paragraph 6 of Schedule 11A to VATA 1994 in relation to the arrangements (duty to notify Commissioners),

• (b) a person under a duty to comply with that paragraph in relation to the arrangements has failed to do so, or

• (c) a reference number has been allocated to the scheme under paragraph 9 of that Schedule (voluntary notification of avoidance scheme which is not a designated scheme).

Paragraphs 26 to 27: supplementary

28

• (1) A person “fails to comply” with any provision mentioned in paragraph 26(1)(a), 26A(2)(a) or 27(b) if and only if any of the conditions in sub-paragraphs (2) to (4) is met.

• (2) The condition in this sub-paragraph is that—

• (a) the tribunal has determined that the person has failed to comply with the provision concerned,

• (b) the appeal period has ended, and

• (c) the determination has not been overturned on appeal.

• (3) The condition in this sub-paragraph is that—

• (a) the tribunal has determined for the purposes of section 118(2) of TMA 1970 that the person is to be deemed not to have failed to comply with the provision concerned as the person had a reasonable excuse for not doing the thing required to be done,

• (b) the appeal period has ended, and

• (c) the determination has not been overturned on appeal.

• (4) The condition in this sub-paragraph is that the person admitted in writing to HMRC that the person has failed to comply with the provision concerned.

• (5) In this paragraph “the appeal period” means—

• (a) the period during which an appeal could be brought against the determination of the tribunal, or

• (b) where an appeal mentioned in paragraph (a) has been brought, the period during which that appeal has not been finally determined, withdrawn or otherwise disposed of.

“Final” counteraction

29

For the purposes of this Schedule the counteraction of a tax advantage or of arrangements is “final” when the assessment or adjustments made to effect the counteraction, and any amounts arising as a result of the assessment or adjustments, can no longer be varied, on appeal or otherwise.

Inheritance tax, stamp duty reserve tax, VAT and petroleum revenue tax

30

• (1) In this Schedule, in relation to inheritance tax, each of the following is treated as a return—

• (a) an account delivered by a person under section 216 or 217 of IHTA 1984 (including an account delivered in accordance with regulations under section 256 of that Act);

• (b) a statement or declaration which amends or is otherwise connected with such an account produced by the person who delivered the account;

• (c) information or a document provided by a person in accordance with regulations under section 256 of that Act;

and such a return is treated as made by the person in question.

• (2) In this Schedule references to an assessment to tax, in relation to inheritance tax, stamp duty reserve tax and petroleum revenue tax, include a determination.

• (3) In this Schedule an expression used in relation to VAT has the same meaning as in VATA 1994.

Power to amend

31

• (1) The Treasury may by regulations amend this Schedule (apart from this paragraph).

• (2) An amendment by virtue of sub-paragraph (1) may, in particular, add, vary or remove conditions or categories (or otherwise vary the meaning of “ avoidance-related rule ”).

• (3) Regulations under sub-paragraph (1) may include any amendment of this Part of this Act that is appropriate in consequence of an amendment made by virtue of sub-paragraph (1).

4A

A defeat notice that is given to a partnership must state that it is a partnership defeat notice.

Conduct notices

Persons leaving partnership: defeat notices

7A

• (1) Sub-paragraphs (2) and (3) apply where—

• (a) a person (“P”) who was a controlling member of a partnership at the time when a defeat notice (“the original notice”) was given to the partnership has ceased to be a member of the partnership,

• (b) the defeat notice had effect in relation to the partnership at the time of that cessation, and

• (c) P is carrying on a business as a promoter.

• (2) An authorised officer may give P a defeat notice.

• (3) If P is carrying on a business as a promoter in partnership with one or more other persons and is a controlling member of that partnership (“the new partnership”), an authorised officer may give a defeat notice to the new partnership.

• (4) A defeat notice given under sub-paragraph (3) ceases to have effect if P ceases to be a member of the new partnership.

• (5) A notice under sub-paragraph (2) or (3) may not be given after the original notice has ceased to have effect.

• (6) A defeat notice given under sub-paragraph (2) or (3) is given in respect of the relevant defeat or relevant defeats to which the original notice relates.

11A

The look-forward period for a notice under paragraph 7A(2) or (3) or 10(3)(za) or (4)(za)—

• (a) begins on the day after the day on which the notice is given, and

• (b) continues to the end of the look-forward period for the original notice (as defined in paragraph 7A(1)(a) or 10(2), as the case may be).

159A

• (1) Where a chargeable person participates in remote gaming, an amount is not to be taken into account in determining the “gaming payment” (if any) under section 159 so far as the amount is paid out of money in relation to which the first and second conditions are met (“excluded winnings”).

• (2) The first condition is that the money has been won by participation in the gaming either—

• (a) in reliance on an offer which waives all or part of a gaming payment, or

• (b) in a case where the gaming payment was paid out of money in relation to which this condition and the second condition were met.

• (3) The second condition is that the chargeable person is not entitled to use the money otherwise than for the purpose of participation in the gaming.

• (4) Subsection (5) applies where—

• (a) a chargeable person participates in remote gaming in reliance on an offer which waives all or part of a gaming payment, and

• (b) that offer has been won in the course of the person's participation in the gaming (and the person was not given the choice of receiving a different benefit instead of the offer).

• (5) The amount which would, apart from this subsection, be treated by section 159(4)(a) or (b) as a gaming payment (or additional gaming payment) is not to be so treated.

• (6) For the purposes of this section, where a payment is made out of moneys which include both excluded winnings and money which is not excluded winnings (the “other funds”), the payment is not taken to be made out of excluded winnings except so far as the amount of the payment exceeds the amount of those other funds.

• (7) In this section “money” includes any amount credited and any other money's worth.

160A

• (1) Where a prize is a freeplay offer (whether or not in the form of a voucher) which does not fall within section 160(4)—

• (a) for the purposes of sections 156 and 157, the expenditure on the prize is nil, and

• (b) subsections (5) to (7) of section 160 do not apply in relation to the prize.

• (2) Where a prize is a voucher which gives the recipient a choice of using it in place of money for freeplay or as whole or partial payment for another benefit, section 160(5)(b) has effect as if after “used” there were inserted “ if it is used as payment for a benefit other than freeplay ”.

• (3) In this section—

• “freeplay” means participation, in reliance on a freeplay offer, in—remote gaming, oran activity in respect of which a gambling tax listed in section 161(4) is charged;

• “freeplay offer” means an offer which waives all or part of—a gaming payment, ora payment in connection with participation in an activity in respect of which a gambling tax listed in section 161(4) is charged.

Representations about a notice

Contents of a conduct notice

Disclosure of tax avoidance schemes: information powers

The Code of Practice on Taxation for Banks: HMRC to publish reports

The Code of Practice on Taxation for Banks: operation & breaches of the Code

The Code of Practice on Taxation for Banks: documents relating to the Code

Scottish basic, higher and additional rates of income tax

Power to update indexes of defined terms

“Disclosable VAT or other indirect tax arrangements”

26A

• (1) For the purposes of this Schedule arrangements are “disclosable VAT or other indirect tax arrangements” at any time if at that time—

• (a) the arrangements are disclosable Schedule 11A arrangements, or

• (b) sub-paragraph (2) applies.

• (2) This sub-paragraph applies if a person—

• (a) has provided information in relation to the arrangements under paragraph 12(1), 17(2) or 18(2) of Schedule 17 to FA 2017, or

• (b) has failed to comply with any of those provisions in relation to the arrangements.

• (3) But for the purposes of this Schedule arrangements in respect of which HMRC have given notice under paragraph 23(6) of that Schedule (notice that promoters not under duty to notify client of reference number) are not to be regarded as disclosable VAT or other indirect tax arrangements.

• (4) For the purposes of sub-paragraph (2) a person who would be required to provide information under paragraph 12(1) of that Schedule—

• (a) but for the fact that the arrangements implement a proposal in respect of which notice has been given under paragraph 11(1) of that Schedule, or

• (b) but for paragraph 13, 14 or 15 of that Schedule,

is treated as providing the information at the end of the period referred to in paragraph 12(1).

Group relief claims after accelerated payment notices

Duty to give further conduct notice where provisional notice not complied with

Duty to give further conduct notice where provisional notice not complied with

Judicial ruling upholding asserted tax advantage: effect on defeat notice

Judicial ruling upholding asserted tax advantage: effect on defeat notice

Offence of concealing etc documents

Disclosure of tax avoidance schemes: information powers

The Code of Practice on Taxation for Banks: operation & breaches of the Code

Companies owned by employee-ownership trusts

Amounts allowed by way of double taxation relief

Controlled foreign companies: qualifying loan relationships (2)

208A

• (1) In the case of a follower notice given by virtue of section 204(2)(a) in relation to a tax enquiry into a return or claim made by P, this section applies where—

• (a) P makes a tax appeal addressed to the tribunal in relation to the return or claim, and

• (b) P is assessed to a penalty under section 208.

• (2) In the case of a follower notice given by virtue of section 204(2)(b) in relation to a tax appeal made by P, this section applies where—

• (a) the tax appeal is addressed to the tribunal, and

• (b) P is assessed to a penalty under section 208.

• (3) P is liable to pay a penalty (in addition to the penalty under section 208) if P or P's representative is found to have acted unreasonably in bringing or conducting relevant proceedings.

• (4) For the purposes of subsection (3), P or P's representative is found to have acted unreasonably in bringing or conducting relevant proceedings if (and only if) subsection (5) or (6) applies.

• (5) This subsection applies if—

• (a) the proceedings are struck out—

• (i) because there is no reasonable prospect of P's case, or part of it, succeeding, or

• (ii) because of something that P or P's representative has done (or not done),

• (b) the appeal period has ended, and

• (c) the proceedings have not been reinstated or (where the strike out was not automatic) the decision to strike out the proceedings has not been set aside or overturned on appeal.

• (6) This subsection applies if—

• (a) on an application by HMRC, the tribunal to which the proceedings are addressed makes a declaration that P or P's representative acted unreasonably in bringing or conducting the proceedings,

• (b) the appeal period has ended, and

• (c) the decision to make the declaration has not been set aside or overturned on appeal.

• (7) The powers of the tribunal in relation to relevant proceedings are to be taken to include the power to make a declaration for the purposes of subsection (6)(a).

• (8) For the purposes of this section, the following are “relevant proceedings” in relation to P—

• (a) where the whole of the proceedings on P's tax appeal relate to the chosen arrangements, the whole of those proceedings;

• (b) where part only of the proceedings on P's tax appeal relates to the chosen arrangements, that part of those proceedings;

• (c) proceedings before the Upper Tribunal on any further appeal by P in relation to relevant proceedings within paragraph (a) or (b) (where those proceedings were determined by the First-tier Tribunal).

• (9) For the purposes of subsection (8), P's tax appeal is the tax appeal mentioned in subsection (1)(a) or (2)(a) (as the case may be).

• (10) For the purposes of this section, “the appeal period” is—

• (a) the period during which an appeal could be brought against the striking out of the proceedings or, as the case may be, the decision to make the declaration under subsection (6)(a) (ignoring any possibility of an appeal out of time), or

• (b) where an appeal mentioned in paragraph (a) has been brought, the period during which that appeal has not been finally determined, withdrawn or otherwise disposed of.

• (11) For the purposes of subsection (10), an appeal includes an application to reinstate proceedings that have been struck out or for the tribunal to set aside its decision.

• (12) In this section, “tribunal” means the First-tier Tribunal or Upper Tribunal.

211A

• (1) Where a person is liable for a penalty under section 208A, HMRC must—

• (a) assess the penalty,

• (b) notify the person who is liable for the penalty, and

• (c) state in the notice a tax period in respect of which the penalty is assessed.

• (2) A penalty under section 208A must be paid before the end of the period of 30 days beginning with the day on which the person is notified of the penalty under subsection (1).

• (3) Subsection (4) of section 211 applies to an assessment under this section as it applies to an assessment under that section.

• (4) An assessment of a penalty under section 208A must be made before the end of the period of 90 days beginning with the day after the end of the appeal period.

• (5) “The appeal period” has the same meaning for the purposes of this section as it has for the purposes of section 208A (see section 208A(10) and (11)).

214A

• (1) P may appeal against a decision of HMRC that a penalty is payable by P under section 208A.

• (2) P may appeal against a decision of HMRC as to the amount of a penalty payable by P under section 208A.

• (3) An appeal under subsection (1) may be made only on one or more of the following grounds—

• (a) that section 208A did not apply when the decision was made or no longer applies;

• (b) that the condition in section 208A(3) was not met when the decision was made or is no longer met;

• (c) that the penalty was not assessed before the end of the period mentioned in section 211A(4).

• (4) An appeal under this section must be made within the period of 30 days beginning with the day on which notification of the penalty is given under section 211A.

• (5) On an appeal under subsection (1), the tribunal may affirm or cancel HMRC's decision.

• (6) On an appeal under subsection (2), the tribunal may—

• (a) affirm HMRC's decision, or

• (b) substitute for HMRC's decision another decision that HMRC had power to make.

• (7) Subsections (5) to (7) of section 214 apply to an appeal under this section as they apply to an appeal under that section.

• (8) In this section “tribunal” has the meaning it has for the purposes of section 214 (see section 214(5) and (11)).

Stop notices

236A

• (1) An authorised officer may give a person a notice (a “stop notice”) if the authorised officer suspects that the recipient promotes, or has promoted, arrangements of a description specified in the notice or proposals for such arrangements.

• (2) A description of arrangements may be specified in a stop notice only if the authorised officer considers that—

• (a) condition A and any of conditions B and C are met, or

• (b) conditions B and D are met.

• (3) Condition A is that arrangements of that description—

• (a) would, if the arrangements had been implemented before 5 April 2019, have been likely to—

• (i) cause a person to be treated as taking a relevant step for the purposes of Part 7A of ITEPA 2003 by virtue of paragraph 1(1) of Schedule 11 to F(No.2)A 2017 (loan charge: employment income), or

• (ii) cause a relevant benefit to be treated as arising for the purposes of section 23A to 23H of ITTOIA 2005 by virtue of paragraph 1 of Schedule 12 to F(No.2)A 2017 (loan charge: trading income),

• (b) would be the same, or similar, in form or effect to arrangements or proposed arrangements to which a reference number has been allocated under section 311 of FA 2004 or paragraph 22 of Schedule 17 to F(No.2)A 2017,

• (c) would be the same, or similar, in form or effect to arrangements in relation to which a person has been given a follower notice under section 204 (circumstances in which a follower notice may be given), or

• (d) would be the same, or similar, in form or effect to arrangements of a description specified in regulations made by the Commissioners under this section.

• (4) Condition B is that—

• (a) arrangements of that description, or proposals for such arrangements, have been, or are likely to be, marketed (in any manner, whether by the recipient of the stop notice or otherwise) as capable of enabling a person to obtain a particular tax advantage, and

• (b) it is more likely than not that arrangements of that description are not capable of enabling that advantage to be obtained.

• (5) Condition C is that condition A is met as a result of the allocation of a reference number under section 311 of FA 2004 or paragraph 22 of Schedule 17 to F(No.2)A 2017 in relation to arrangements or proposed arrangements (the “reference arrangements”) and—

• (a) HMRC has required any person to provide information or documents under section 310A or 311C of FA 2004 or paragraph 19 or 22C of Schedule 17 to F(No.2)A 2017 in relation to the reference arrangements and that person has not complied with that requirement, or

• (b) HMRC has made an application to the tribunal under section 308A(2) of FA 2004 or paragraph 16 of Schedule 17 to F(No.2)A 2017 in relation to the reference arrangements.

• (6) Condition D is that—

• (a) arrangements of that description or proposals for such arrangements would be relevant arrangements or relevant proposals (see section 234), and

• (b) the recipient of the notice is subject to a conduct notice or a monitoring notice.

• (7) For the purposes of this section, and sections 236B to 236K and 272A, a person promotes arrangements or a proposal for arrangements if the person does anything in connection with those arrangements or that proposal that would, if those arrangements or that proposal were relevant arrangements or a relevant proposal, cause the person to be carrying on a business as a promoter, or to be treated as such, for the purposes of this Part.

236B

• (1) A person subject to a stop notice must not promote—

• (a) any arrangements that meet the description specified in the notice or that have a similar form or effect to arrangements of that description, or

• (b) any proposal for such arrangements.

• (2) A person is subject to a stop notice for the purposes of this Part if—

• (a) the person is the recipient of the notice;

• (b) the person is a body corporate or partnership that the recipient of the notice controls or has significant influence over;

• (c) the person controls or has significant influence over a body corporate or partnership that is the recipient of the notice;

• (d) the recipient of the notice makes a relevant transfer to the person.

• (3) If the recipient of a stop notice controls or has significant influence over a person that is a body corporate or partnership, the recipient must—

• (a) within 5 days of the giving of the notice, give a copy of the notice to that person, and

• (b) within 15 days of the giving of the notice, provide HMRC with the information mentioned in subsection (6) in relation to that person.

• (4) If the recipient of a stop notice is a body corporate or partnership, it must—

• (a) within 5 days of the giving of the notice, give a copy of the notice to each person who controls or has significant influence over it, and

• (b) within 15 days of the giving of the notice, provide HMRC with the information mentioned in subsection (6) in relation to each such person.

• (5) If the recipient of a stop notice makes a relevant transfer to a person, the recipient must—

• (a) before making the transfer, give a copy of the notice to that person, and

• (b) within 15 days of making the transfer, provide HMRC with the information mentioned in subsection (6) in relation to that person.

• (6) The information referred to in subsections (3)(b), (4)(b) and (5)(b) in relation to a person is—

• (a) the person's name;

• (b) any name under which the person carries on a business and any previous name or pseudonym known by the recipient of the stop notice;

• (c) the person's business address or registered office.

• (7) An authorised officer may give a copy of a stop notice to any person the officer considers the recipient of the notice is obliged to give a copy to as a result of subsection (3)(a), (4)(a) or (5)(a) (but this does not affect the obligation of the recipient to do so).

• (8) Sub-paragraphs (5) to (11) of paragraph 13A of Schedule 34 (meaning of “control” and “significant influence”) apply to this section as they apply to Part 2 of that Schedule.

• (9) In this section “relevant transfer” has the meaning it has in paragraph 5 of Schedule 33A (promotion structures).

236C

• (1) A person subject to a stop notice must provide a return to HMRC containing the information described in subsection (4) for each relevant period.

• (2) The first relevant period is the 3 month period commencing on the day the stop notice was given to its recipient.

• (3) Each successive 3 month period that commences within the period of 3 years commencing on that day is a relevant period.

• (4) The information that must be contained in a return under subsection (1) is—

• (a) the number (which may be nil) of relevant clients of the person subject to the stop notice in the relevant period to which the return relates,

• (b) if the return is the return for the first relevant period, the number (which may be nil) of relevant clients of the person in the period ending with the commencement of the first relevant period,

• (c) in respect of each relevant client—

• (i) the client's name and address,

• (ii) the unique taxpayer reference number (if any) allocated to the client by HMRC, and

• (iii) the client's national insurance number (if any),

• (d) any name by which any such arrangements or proposal is known or is marketed.

• (5) For the purposes of this section, a person (“C”) is a “relevant client” of a person subject to a stop notice (“P”) in a period if at any time during that period—

• (a) P has made a firm approach to C in relation to a proposal for arrangements that fall within the description specified in the stop notice;

• (b) P has made the proposal available for implementation by C;

• (c) P has provided services to C in relation to arrangements falling within the description specified in the stop notice, or in relation to a proposal for such arrangements.

• (6) If the person does not have the information referred to in subsection (4)(c)(ii) or (iii) in respect of a relevant client, the return must instead include a statement of that fact.

• (7) A return for a relevant period must be provided to HMRC before the end of the period of 15 days commencing on the last day of the relevant period.

• (8) An authorised officer may by notice to a person subject to the obligation to make a return under sub-paragraph (1) provide for that obligation to cease to have effect in relation to that person from such time as may be specified in the notice.

236D

• (1) A person subject to a stop notice may make a request for the notice to cease to have effect in relation to that person if the person—

• (a) does not intend to promote, and has not promoted, arrangements that fall within the description of arrangements specified in the notice or proposals for such arrangements,

• (b) considers that the conditions for specifying the description of arrangements (see section 236A(2)) were not met, or

• (c) considers that there are other reasons for it to cease to have effect.

• (2) A request under subsection (1) must—

• (a) be made in writing to an authorised officer,

• (b) be made before the end of the period of 30 days beginning with the day on which the stop notice was given,

• (c) contain an explanation of the basis for the request, and

• (d) be accompanied by such evidence to support that explanation as is reasonable to provide in the circumstances.

• (3) The authorised officer to whom the request is made must decide whether or not the notice is to cease to have effect in relation to the person who made the request.

• (4) The authorised officer must give the person who made the request a notice setting out the officer's decision (“a decision notice”) before the end of the period of 45 days beginning with the day on which the request was received.

• (5) If at the end of that period the authorised officer has not given a decision notice, the stop notice ceases to have effect in relation to the person who made the request.

• (6) An authorised officer may also determine that a stop notice is to cease to have effect in relation to a person who has not made a request under subsection (1) by giving the person a notice (“a withdrawal notice”).

• (7) A decision notice or a withdrawal notice that provides for a stop notice to cease to have effect in relation to a person must specify the date on which it ceases to have effect in relation to that person, which may be earlier or later than the date on which the decision notice or withdrawal notice is given.

236E

• (1) A person may appeal against a refusal by an authorised officer to grant a request that a stop notice cease to have effect in relation to that person.

• (2) Notice of appeal must be given—

• (a) in writing to the officer who gave the decision notice under section 236D(4), and

• (b) within the period of 30 days beginning with the day on which the decision notice was given.

• (3) The notice of appeal must state the grounds of appeal.

• (4) The grounds of appeal that may be stated are the same as the grounds on which a person may request that a stop notice cease to have effect as mentioned in section 236D(1).

• (5) On an appeal that is notified to the tribunal, the tribunal may—

• (a) confirm the refusal, or

• (b) direct that the stop notice is to cease to have effect in relation to a person from such date as the tribunal consider appropriate (which may be earlier or later than the date on which the tribunal makes that direction).

• (6) Subject to this section, the provisions of Part 5 of TMA 1970 relating to appeals have effect in relation to an appeal under this section.

236F

• (1) A person who makes an appeal under section 236E may make a suspension request.

• (2) A “suspension request” is a request that a stop notice which is the subject of an appeal under that section is to cease to have effect in relation to the person making the request until the appeal has been determined, withdrawn or otherwise disposed of.

• (3) A suspension request must—

• (a) be made in writing to the authorised officer to whom the notice of appeal was given,

• (b) contain an explanation of the basis for the request, and

• (c) be accompanied by such evidence to support that explanation as is reasonable to provide in the circumstances.

• (4) The authorised officer to whom the suspension request is made must decide whether or not the notice is to cease to have effect in relation to the person who made the request until the appeal has been determined, withdrawn or otherwise disposed of.

• (5) When deciding whether or not to grant a suspension request, the officer must have regard to the need to protect—

• (a) the public revenue, and

• (b) persons to whom arrangements or proposals for arrangements of the description specified in the stop notice might be marketed.

• (6) The authorised officer must give the person who made the suspension request a notice setting out the officer's decision (“a suspension decision notice”) before the end of the period of 30 days beginning with the day on which the request was received.

• (7) If at the end of that period the authorised officer has not given a suspension decision notice, the stop notice ceases to have effect in relation to the person who made the request until either—

• (a) the officer gives a decision notice that provides that the suspension request is not to be granted, or

• (b) the appeal has been determined, withdrawn or otherwise disposed of.

236G

• (1) This section applies to a stop notice if—

• (a) condition A in section 236A was met in relation to the giving of that notice as a result of the allocation of a reference number under section 311 of FA 2004 or paragraph 22 of Schedule 17 to F(No.2)A 2017, and

• (b) that reference number has been withdrawn.

• (2) Where this section applies to a stop notice, it ceases to have effect in relation to every person who is subject to it from the time when the reference number in question was withdrawn.

• (3) HMRC must give a notice to—

• (a) each person who has been given a stop notice to which this section applies, and

• (b) every other person that HMRC is aware was subject to that notice.

• (4) A notice given under subsection (3) must state the reason for the withdrawal of the reference number in question and may contain such further explanation as HMRC consider appropriate (for example, it may contain HMRC's view of the arrangements or proposed arrangements to which the reference number relates).

236H

• (1) An authorised officer may publish—

• (a) the fact that a person is subject to a stop notice;

• (b) details of any arrangements or proposal for arrangements promoted by that person that the officer considers meet the description specified in the notice.

• (2) Publication under subsection (1) may also include the following information about the person—

• (a) the person's name;

• (b) the person's business address or registered office;

• (c) any other information that the authorised officer considers it appropriate to publish in order to make clear the person's identity.

• (3) The reference in subsection (2)(a) to the person's name includes any name under which the person carries on a business and any previous name or pseudonym.

• (4) Publication of information about a person subject to a stop notice may not take place before the end of the appeal period, but an authorised officer may, at any time after the notice is given, publish the description of arrangements or proposal for arrangements specified in the notice and the fact that arrangements of that description are subject to a stop notice.

• (5) The “appeal period” means—

• (a) the period during which a request under section 236D(1) (withdrawal of stop notices) could be made,

• (b) where such a request was made, the period during which an appeal to the tribunal against a decision notice under section 236D(4) could be brought under section 236E, or

• (c) where an appeal mentioned in paragraph (b) has been brought, the period during which the proceedings on that appeal to the tribunal have not been determined, withdrawn or otherwise disposed of.

• (6) For the purposes of subsection (5)(c), reference to proceedings on an appeal to the tribunal do not include any proceedings on appeal from the tribunal.

236I

• (1) Where an authorised officer has published anything under section 236H in relation to a stop notice that has ceased to have effect as a result of section 236G, an authorised officer must publish—

• (a) the fact it has ceased to have effect;

• (b) the reason for the withdrawal of the reference number in question (see section 236G(1));

• (c) such further explanation as HMRC consider appropriate.

• (2) Where an authorised officer is required to publish information as a result of subsection (1), the officer may also publish information about the persons who were subject to such a stop notice (including the information mentioned in section 236H(1) and (2)).

236J

• (1) A person (“P”) subject to a stop notice who (at any time) has promoted arrangements falling within the description specified in that notice, or has promoted a proposal for such arrangements, must give a notice to—

• (a) each of P's clients in relation to those arrangements or that proposal, and

• (b) each person who P could reasonably be expected to know is an intermediary in relation to any such proposal.

• (2) The notice must—

• (a) set out the fact that a person is subject to a stop notice,

• (b) set out the fact that the arrangements or proposed arrangements the recipient of the notice is a client or intermediary in relation to meets the description of arrangements specified in the notice, and

• (c) be accompanied with a copy of the stop notice.

• (3) A person (“C”) is a client of P if—

• (a) P has made a firm approach to C in relation to a proposal for arrangements that fall within the description specified in the stop notice,

• (b) P has made the proposal available for implementation by C, or

• (c) P has provided services to C in relation to arrangements falling within the description specified in the stop notice, or in relation to a proposal for such arrangements.

• (4) A notice under this section must be given—

• (a) to each person who was a client of P on or before the day on which P became aware that P was subject to the notice, within 5 days of that day;

• (b) to each person that P could reasonably be expected to know was an intermediary in relation to the proposal in question on or before the day on which P became aware that P was subject to the notice, within 5 days of that day;

• (c) to each person that P subsequently becomes aware is an intermediary in relation to the proposal in question, within 5 days of P becoming so aware.

236K

• (1) This section applies if an authorised officer suspects that a person subject to a stop notice has failed to comply with section 236B(1).

• (2) Where this section applies, the officer may provide a copy of the stop notice to any person the officer considers might be affected by that failure or the giving of the stop notice (for example, any person who is a client of the person who failed to comply with section 236B(1) or who otherwise makes use of arrangements that must not be promoted as a result of the stop notice).

• (3) Where the officer provides a copy of a stop notice to a person under subsection (2) the officer may also provide any of the following information to that person—

• (a) the name of the person who failed to comply with section 236B(1);

• (b) the business address or registered office of that person;

• (c) any other information that the authorised officer considers it appropriate to provide in order to make clear the identity of that person;

• (d) details of any arrangements or proposal for arrangements promoted by that person that meet the description specified in it;

• (e) an explanation of the effect of the stop notice;

• (f) an explanation of why the stop notice was given.

239A

• (1) This section applies if an authorised officer becomes aware at any time that a person to whom a conduct notice has been given ( “ P ”) has made a relevant transfer within the meaning of paragraph 5 of Schedule 33A (promotion structures) to another person ( “D”).

• (2) The authorised officer may give D a conduct notice.

• (3) If the proposed terms of the conduct notice to be given to D are the same as the terms of the conduct notice given to P, section 238(2) (content of conduct notice: opportunity to comment) does not apply in relation to the proposed terms.

• (4) If the proposed terms of the conduct notice to be given to D differ from the terms of the conduct notice given to P, section 238(2) applies in relation to the proposed terms as if the reference in that provision to “the proposed terms of the notice” were a reference to the differences between the proposed terms of the conduct notice to be given to D and the terms of the conduct notice given to P.

• (5) Where a person is given a conduct notice under this section, but considers that they were not a person to whom a relevant transfer was made (such that this section applies), they may make representations to that effect to the authorised officer.

• (6) If (in light of those representations) the authorised officer considers that this section did not apply at the time the conduct notice was given, the officer must withdraw the notice.

Judicial ruling upholding asserted tax advantage: effect on defeat notice

244A

• (1) This section applies if an authorised officer becomes aware at any time that a person to whom a monitoring notice has been given ( “ P ”) has made a relevant transfer within the meaning of paragraph 5 of Schedule 33A (promotion structures) to another person ( “D”).

• (2) The authorised officer may give D a monitoring notice.

• (3) Where a person is given a monitoring notice under this section, but considers that they were not a person to whom a relevant transfer was made (such that this section applies), they may make representations to that effect to the authorised officer.

• (4) If (in light of those representations) the authorised officer considers that this section did not apply at the time the monitoring notice was given, the officer must withdraw the notice.

• (5) Subsections (2) to (4) of section 244 (monitoring notice: content and issuing) apply in relation to a monitoring notice given under subsection (2) of this section as they apply to a monitoring notice given under subsection (1) of that section, but as if the reference in subsection (3)(a) of that section to “the person” were a reference to P.

Monitoring notices: tribunal approval

272A

• (1) Schedule 36 to FA 2008 (information and inspection powers) applies for a relevant purpose in relation to a relevant person as it applies for the purpose of checking the tax position of a person as if—

• (a) any provisions which can have no application for that purpose were omitted (for example, paragraphs 10A, 11, 12A and 12B);

• (b) references to “the taxpayer” were to “the relevant person”;

• (c) references to prejudice to the assessment or collection of tax included prejudice to the fulfilment of a relevant purpose;

• (d) references to “business documents” included any documents (or copies of documents) in connection with any relevant arrangements or relevant proposal;

• (e) references to a pending appeal relating to tax were to a pending appeal by the relevant person under this Part;

• (f) in paragraph 13, after “paragraph 39” there were inserted “ of this Schedule and paragraph 2(3A) of Schedule 35 to FA 2014 ”;

• (g) paragraphs 21 to 21B were omitted;

• (h) paragraph 25 were omitted;

• (i) in paragraph 29(1) for “a taxpayer”, in the first place it occurs, there were substituted “ a relevant person ”;

• (j) Part 7 (penalties) were omitted (but see Schedule 35 of this Act).

• (2) A person is “relevant” if—

• (a) the officer suspects that the person carries on, or has in the past carried on, a business as a promoter in relation to a relevant proposal or relevant arrangements and—

• (i) the officer suspects that the person has met a threshold condition,

• (ii) the officer suspects the person could be given a defeat notice, or

• (iii) the officer suspects the person promotes, or has promoted, arrangements, or proposals for such arrangements, of a description that the officer suspects could be specified in a stop notice,

• (b) the officer suspects that—

• (i) the person made a relevant transfer, or

• (ii) the person is a person to whom a relevant transfer was made, or

• (c) the person is, or was, subject to a stop notice, conduct notice or monitoring notice.

• (3) The following are “relevant purposes” in relation to a relevant person—

• (a) determining whether the relevant person carries on or has in the past carried on a business as a promoter in relation to a relevant proposal or relevant arrangements;

• (b) determining whether the relevant person has met a threshold condition;

• (c) determining whether the relevant person could be given a defeat notice;

• (d) determining whether the person has provided false or misleading information or documents in relation to a stop notice, conduct notice or monitoring notice;

• (e) determining whether arrangements, or proposals for such arrangements, that an officer suspects are promoted by the relevant person are of a description that could be specified in a stop notice;

• (f) enabling HMRC to understand the operation of arrangements, or proposals for such arrangements, that an officer suspects are promoted by the relevant person;

• (g) identifying any other person who has a connection with the relevant person that results (whether solely because of that connection or otherwise) in the relevant person being a member of a promotion structure;

• (h) determining whether the relevant person made a relevant transfer, and if so to whom;

• (i) determining whether a relevant transfer was made to the relevant person, and if so by whom;

• (j) monitoring compliance with any stop notice, conduct notice or monitoring notice the relevant person is subject to.

• (4) In this section—

• (a) reference to compliance with a stop notice, conduct notice or monitoring notice includes compliance with any provisions of this Part that a person subject to such a notice must comply with;

• (b) reference to a person “promoting” is to be construed in accordance with section 236A(7);

• (c) “relevant transfer” has the meaning it has in paragraph 5 of Schedule 33A (promotion structures).

The Code of Practice on Taxation for Banks: “participating” groups or entities

Controlled foreign companies: qualifying loan relationships (2)

Tax consequences of financial sector regulation

Interpretation

Additional penalty for unreasonable tax appeal

4A

Section 208A(3) applies, in relation to a partnership follower notice, as if the first reference to P were to each relevant partner.

SCHEDULE 33A

Cases in which a person is a member of a promotion structure.

1

A person (“A”) is a member of a promotion structure if A falls within—

• (a) the case described in paragraph 2 (multiple entity promoter),

• (b) the case described in paragraph 3 (acting for a non-resident promoter),

• (c) the case described in paragraph 4 (control of another promoter), or

• (d) the case described in paragraph 5 (transfer of promotion business).

Multiple entity promoter

2

• (1) A falls within this case if—

• (a) A and one or more other persons carry out activities between them that if carried out by a single person would cause that person to be a promoter within the meaning of section 235(2) or (3), and

• (b) each of the persons carrying out those activities is closely related to at least one other of those persons.

• (2) A person (“D”) is closely related to another person (“E”) if—

• (a) D is able to secure that E acts in accordance with D's wishes (or vice versa),

• (b) E typically acts in accordance with D's wishes,

• (c) it is reasonable to expect that E will act in accordance with D's wishes,

• (d) a third person is able to secure that D and E act in accordance with the third person's wishes,

• (e) D and E typically act in accordance with a third person's wishes,

• (f) it is reasonable to expect that D and E will act in accordance with a third person's wishes, or

• (g) the 50% investment condition is met in relation to D and E.

• (3) The 50% investment condition is met in relation to D and E if—

• (a) D has a 50% investment in E (or vice versa), or

• (b) a third person has a 50% investment in each of D and E.

• (4) Subsections (3) to (9) of section 259ND of TIOPA 2010 apply for the purposes of determining whether a person has a “50% investment” in another person, and references in those subsections to X% are to be read as references to 50%.

Acting for a non-resident promoter

3

• (1) A falls within this case if A acts under the instruction or guidance of a person (“O”) who carries on a business as a promoter and who is resident outside the United Kingdom, and—

• (a) A does any of the things mentioned in sub-paragraph (2) under that instruction or guidance, or

• (b) A receives remuneration (of any kind) from O in connection with the business carried on by O.

• (2) The things referred to in sub-paragraph (1)(a) are—

• (a) being a promoter;

• (b) facilitating any activity by virtue of which a person would be a promoter (for example, by facilitating the organisation of relevant arrangements or by facilitating the making of a relevant proposal available for implementation).

• (3) For the purposes of sub-paragraph (1)(b), reference to A receiving remuneration from O includes—

• (a) A receiving any payment or benefit as a consequence of instructions given by O (whether or not O is the source of that payment or benefit);

• (b) A receiving any payment or benefit as a consequence of any arrangements that O made or participated in the making of, or that are referable to the business carried on by O (which may include relevant arrangements, or arrangements implementing a relevant proposal, promoted by O or which are otherwise referable to that business).

• (4) For the purposes of this paragraph a person is a promoter if the person meets the description of a promoter in section 235(2) or (3) (whether or not the person carries on a business).

Control of another promoter

4

• (1) A falls within this case if—

• (a) A is an individual who controls, or has significant influence over, a body corporate or a partnership (“B”) that carries on a business as a promoter, and

• (b) A meets the personal condition or the corporate condition.

• (2) The personal condition is that, at any time after A first controlled or had significant influence over B—

• (a) A was subject to a disqualification order or disqualification undertaking under the Company Directors Disqualification Act 1986 or the Company Directors Disqualification (Northern Ireland) Order 2002 (S.I. 2002/3150 (N.I. 4)),

• (b) A was bankrupt, or A's estate had been sequestrated under the Bankruptcy (Scotland) Act 2016,

• (c) A was the subject of an individual voluntary arrangement under Part 8 of the Insolvency Act 1986,

• (d) A's estate was subject to a protected trust deed (see section 163 of the Bankruptcy (Scotland) Act 2016),

• (e) A was subject to a bankruptcy restrictions order or an interim bankruptcy restrictions order,

• (f) A was subject to a debt relief order, or

• (g) A was subject to a debt relief restrictions order or interim debt relief restrictions order.

• (3) The corporate condition is that at any time A controlled, or had significant influence over, a person (other than B) that carried on business as a promotor that was—

• (a) a body corporate or a partnership that was dissolved or became insolvent,

• (b) a body corporate that became dormant,

• (c) a company formed and registered under the Companies Act 2006 (see section 1 of that Act) that made an application under section 1003 of that Act to strike the company's name off the register, or

• (d) a company formed and registered under that Act in respect of which the registrar (within the meaning of that Act) has published a notice under section 1000(3) or 1001(1) of that Act, if two months have passed since the publication of that notice.

• (4) For the purposes of this paragraph, the circumstances in which a body corporate or partnership becomes insolvent include—

• (a) if a company voluntary arrangement takes effect under Part 1 of the Insolvency Act 1986,

• (b) if an administration application (within the meaning of Schedule B1 to that Act) is made or a receiver or manager, or an administrative receiver, is appointed,

• (c) on the commencement of a creditor's voluntary winding up (within the meaning of Part 4 of that Act) or a winding up by the court under Chapter 6 of that Part,

• (d) if a compromise or arrangement takes effect under Part 26 of the Companies Act 2006,

• (e) if a bank insolvency order takes effect under Part 2 of the Banking Act 2009,

• (f) if a bank administration order takes effect under Part 3 of that Act, or

• (g) on the occurrence of any corresponding circumstances which have effect under or as a result of the law of Scotland or Northern Ireland or a country or territory outside the United Kingdom.

• (5) For the purposes of this paragraph, a body corporate is dormant if—

• (a) in the case of a body corporate incorporated in the United Kingdom, it is dormant within the meaning given by section 1169 of the Companies Act 2006, or

• (b) in any other case, it would be dormant within the meaning of that section if the body corporate were incorporated in the United Kingdom.

• (6) Sub-paragraphs (5) to (11) of paragraph 13A of Schedule 34 (meaning of “control” and “significant influence”) apply to this paragraph as they apply to Part 2 of that Schedule.

• (7) In this paragraph—

• “bankruptcy restrictions order” or “interim bankruptcy restrictions order” means such an order (or as the case may be, undertaking) under—Schedule 4A to the Insolvency Act 1986,Schedule 2A to the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19)), orPart 13 of the Bankruptcy (Scotland) Act 2016 (asp 21);

• “debt relief order” means such an order under—Part 7A of the Insolvency Act 1986, orPart 7A of the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19));

• “debt relief restrictions order” or “interim debt relief restrictions order” means such an order (or as the case may be, undertaking) under—Schedule 4ZB to the Insolvency Act 1986, orSchedule 2ZB to the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19)).

Transfer of promotion business

5

• (1) A falls within this case if—

• (a) there has been a relevant transfer to A, or

• (b) there has been a relevant transfer to a body corporate or partnership that A controls, or has significant influence over.

• (2) For the purposes of sub-paragraph (1) “relevant transfer” means a transfer of—

• (a) the whole of the business of a person carrying on business as a promoter;

• (b) any part of such a business that relates to the promotion of relevant arrangements or relevant proposals;

• (c) property, rights or liabilities of such a business that are connected with the promotion of relevant arrangements or relevant proposals.

• (3) In sub-paragraph (2) “transfer” means any transfer in substance (whether or not the transfer is formal or for consideration, and whether or not the transfer is direct).

• (4) Sub-paragraphs (5) to (11) of paragraph 13A of Schedule 34 (meaning of “control” and “significant influence”) apply to this paragraph as they apply to Part 2 of that Schedule.

277A

• (1) A person who, without reasonable excuse, fails to comply with a duty imposed under section 236B(1) is guilty of an offence.

• (2) The recipient of a stop notice (“R”) is guilty of an offence if—

• (a) R fails, without reasonable excuse, to comply with a duty imposed under section 236B(3)(a), (4)(a) or (5)(a) to give a copy of the notice to another person (“P”),

• (b) P subsequently fails to comply with a duty imposed under section 236B(1) in relation to the notice, and

• (c) at the time of P’s failure the stop notice continues to have effect in relation to R.

• (3) For the purposes of this section—

• (a) an insufficiency of funds is not a reasonable excuse unless attributable to events outside the person's control,

• (b) if the person relies on any other person to do anything, that is not a reasonable excuse unless the first person took reasonable care to avoid the failure,

• (c) if the person had a reasonable excuse for the failure but the excuse has ceased, the person is to be treated as having continued to have the excuse if the failure is remedied without unreasonable delay after the excuse ceased, and

• (d) reliance on legal advice is to be taken automatically not to constitute a reasonable excuse where the person is a monitored promoter if either—

• (i) the advice was not based on a full and accurate description of the facts, or

• (ii) the conclusions in the advice that the person relied on were unreasonable.

277B

• (1) If an offence under section 277A is committed by a body corporate or a partnership and—

• (a) is committed with the consent or connivance of a relevant person in relation to the body or partnership, or

• (b) is attributable to neglect on the part of such a person,

the person (as well as the body or partnership) commits the offence and is liable to be proceeded against and punished accordingly.

• (2) A “relevant person” is—

• (a) in relation to a body corporate other than one whose affairs are managed by its members—

• (i) a director, manager, secretary or other similar officer of the body, or a person purporting to act in such a capacity, or

• (ii) a shadow director within the meaning of section 251 of the Companies Act 2006;

• (b) in relation to a limited liability partnership or other body corporate whose affairs are managed by its members—

• (i) a member who exercises functions of management with respect to it, or a person purporting to act in such a capacity, or

• (ii) in the case of a limited liability partnership, a shadow member within the meaning of regulation 2 of the Limited Liability Partnerships Regulations 2001 (S.I. 2001/1090);

• (c) in relation to a partnership, a partner or a person purporting to act in such a capacity.

Representations about a notice

Duty to give conduct notice: defeat of promoted arrangements

Duration of conduct notice

Notification of determination under section 245

Report on administration of the Scottish rate of income tax

Interpretation