On 30 October 2026, the UK government published a policy paper outlining the prohibition of the promotion of certain tax avoidance arrangements. This measure, stemming from the Finance Act 2026, targets promoters who design, market, or facilitate tax avoidance schemes that HMRC has successfully challenged. The policy introduces a new regime where HMRC can issue “stop notices” to promoters, preventing them from marketing specific arrangements. Failure to comply carries significant financial penalties and potential criminal prosecution. The rules apply to arrangements entered into on or after 1 April 2026.
Key Takeaways
- Promoter Responsibilities: Promoters must cease marketing prohibited arrangements immediately upon receiving a stop notice. They are required to notify existing clients of the prohibition and provide HMRC with client lists.
- Disclosure Obligations: Tax advisers and intermediaries must disclose any involvement with prohibited schemes under the Disclosure of Tax Avoidance Schemes (DOTAS) regime. Non-disclosure attracts penalties up to £1 million.
- Taxpayer Protection: The policy aims to protect taxpayers from being drawn into ineffective avoidance schemes that result in unexpected tax liabilities, interest, and penalties. Taxpayers are encouraged to seek advice from reputable professionals.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement