Budget 2010 – Tax avoidance schemes
New regulations will be included in Finance Bill 2010 which will introduce new penalties for failure to comply with the rules for the disclosure of tax avoidance schemes (DOTAS). The changes will affect all taxpayers who implement listed tax avoidance schemes as well as the promoters of tax avoidance schemes.
- introduce a new “trigger point” for the disclosure of actively marketed schemes
- include new requirements for a person who introduces a client to a notifiable scheme to provide HMRC with the name and address of the promoter who provided them with details of that scheme
- increase the penalties for failure to comply with a disclosure obligation
- introduce a new requirement for promoters to provide HMRC with periodic updates about clients who implement a notifiable scheme.
New regulations will also be introduced to revise and extend the DOTAS hallmark schemes and the relevant national insurance regulations will be updated to the extent that they concern income tax.
It is expected that most of the measures outlined above will come into effect in the autumn of 2010.