The government set out in its consultations ‘Raising the Stakes on Tax Avoidance’ (August 2013) and ‘Tackling Marketed Tax Avoidance’ (January 2014), its aims to change the economics of entering into tax avoidance schemes and to change the behaviours of people and promoters in relation to tax avoidance.  Following that consultation process, the measures on follower notices and accelerated payments were introduced by legislation enacted in FA 2014 and NICA 2015.  The objective of the legislation was to ensure that tax in dispute in relation to the use of an avoidance scheme sits with the Exchequer during a dispute.

HMRC’s guidance on the enacted legislation has now been updated to cover penalty reductions for taxpayer co-operation, when it is reasonable for a taxpayer to appeal, and for multiple grounds of appeal.  The guidance now sets out specific percentages for the maximum reductions for each way in which a taxpayer can co-operate, for various circumstances.  Worked examples are detailed.  The guidance also explains in what circumstances it is reasonable for a taxpayer not to take corrective action, but to pursue an appeal.

The guidance can be found at: Follower notices and accelerated payments – GOV.UK (www.gov.uk)

Please contact us if you have any questions on tax avoidance schemes that you may have used, we can assist with reviewing your position and handling open enquires.