A reminder that promoters of tax avoidance schemes cannot circumvent the POTAS regime by re-organising their business so that they either share control of a promoting business or put a person or persons between themselves and the promoting business. Apparently, this will ensure HMRC can apply the POTAS regime as intended when introduced.
Legislation will be introduced in Finance Bill 2017 to amend the control definitions in paragraph 13A of Schedule 34 to FA 2014. These amendments introduce the term ‘significant influence’ to ensure promoters cannot reorganise their business so that they put a person or persons between themselves and the promoting business. The amendment also ensures that the control definitions apply where 2 or more persons together have control or significant influence over a business.
If practitioners want to refresh their memory, the original published guidance on the Promoter of Tax Avoidance Schemes (POTAS) can be accessed here: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/454865/POTAS.pdf
On a lighter note, the Finance Bill 2017 – explanatory notes – can be accessed at https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/600791/Finance_Bill_2017_Explanatory_Notes.pdf. A mere 448 pages.
At https://www.gov.uk/government/publications/bringing-business-tax-into-the-digital-age-legislation-overview you can also access information on the primary and secondary legislation for Making Tax Digital for Business.
Are we really expected to absorb the detail of all these changes and still find time to advise our clients? The image of walking on broken glass comes to mind.