disclosure of tax avoidance schemes DoTAS
Certain UK tax planning has to be disclosed to HMRC. The disclosure is usually made by a ‘promoter’ although in some situations the disclosure must be made by the taxpayer. A ‘promoter’ is a person who is involved in the provision of tax services in relation to the planning. A promoter may also be a bank or a securities house.
The legislation currently applies to income tax, corporation tax, capital gains tax, stamp duty land tax, stamp duty reserve tax, the annual tax on enveloped dwellings and national insurance contributions. In broad terms, it applies where there are arrangements which generate a tax advantage and where the arrangements fall within one or more specific hallmarks. Similar rules apply to inheritance tax where there is an advantage in relation to the tax charge that arises when property is transferred into trust. Different disclosure rules also apply to certain VAT arrangements.