Measure

Introduction of new measures to tackle promoters of tax avoidance

The measure

The government has confirmed that it will introduce new measures to tackle the most persistent and determined promoters of tax avoidance. The measures will include a new criminal offence for promoters who continue to promote tax avoidance after having received a notice to stop, as well as a new power that will enable HMRC to apply to the court to disqualify directors of companies involved in promoting tax avoidance. 

 

Who will be affected?

Individuals and businesses who are involved in promoting tax avoidance.

 

When will the measure come into effect?

These changes will take effect from Royal Assent of Autumn Finance Bill 2023.

Our view

This is an expected announcement from the government, given HMRC’s continued focus on tax avoidance and the tax avoidance industry. The new powers will assist HMRC in tackling tax avoidance in relation to those who continue to promote it, despite prior warnings.

The new criminal offence measure is designed to ensure the strongest possible deterrent is in place to ensure promoters comply with the stop notices, and further disincentivise the promotion of tax avoidance.