BKM509200 | Interaction of the Code with other measures: Code and special measures

The Government introduced special measures in FA16/SCH19/PART3 “to impact a small section of Large Businesses who persistently engage in aggressive tax planning and/or who refuse to engage with HM Revenue and Customs (HMRC) in an open and collaborative way.”

Compliance with the Code requires a bank to maintain an open and collaborative relationship with HMRC and to refrain from engaging in aggressive tax planning. It is therefore unlikely that a Code compliant bank would be subject to special measures.

However, a bank does not have to be found to be in breach of its obligations under the Code in order to be subjected to special measures. The two regimes are independent of each other.