SM03600 | Special Measures: Behaviours: Avoidance schemes and arrangements

Tax avoidance is a long-established risk for HMRC. A large business will satisfy the behaviour condition for Special Measures where HMRC determine it is party to a tax avoidance scheme. It only applies to arrangements and avoidance carried out after April 2016.

When considering if the arrangement section of the legislation, the avoidance criteria relates to schemes that have been specifically mentioned in the legislation. These are:

• arrangements subject to a final decision notice under FA 2013, Schedules 43, 43A, or 43B

• notifiable schemes under Schedule 11A to VATA 1994

• notifiable schemes under Part 7 of FA 2004

The above do not include arrangements to which HMRC has given notice under section 312(6) of FA 2004 (notice that promoters not under duty to provide clients with prescribed information.

FA2016/SCH19/PT3/PARA38