Schedule 16 of Finance (No.2) Act 2017 introduced new penalties for enablers of defeated tax arrangements (the ‘penalties for enablers’ rules) with effect from 16 November 2017.
These new penalties extend beyond those who promote tax avoidance schemes to those involved at any step in their development, design, management or implementation.
A recent ATT technical article Penalties for enablers of defeated tax arrangements provides a short summary of the new rules and their scope.
This document, by Emma Rawson, ATT Technical Officer, is intended to address what the penalties for enablers rules mean in practice for members by considering some Frequently Asked Questions (FAQs). It is only intended as an introduction to the areas which members might wish to consider. It is not intended to act as detailed guidance, and should not be relied upon by members.
Please note that this document is based on HMRC’s draft guidance which was published for consultation on 20 October 2017 and can be found here. The contents of this draft guidance may be subject to change before it is finalised by HMRC.