▪ 2. Tax avoidance schemes

2.1 Direct tax avoidance schemes

Promoters of tax avoidance schemes relating to direct taxes have disclosure obligations.

• There is also an obligation on taxpayers to disclose details of schemes in certain cases.

• Any person that fails to comply with any of the disclosure provisions is liable to a penalty not exceeding £600 per day.

• Where a disclosure notice has been issued, but not complied with within 10 days, the maximum daily penalty is £5,000.

Notification is required from a promoter of arrangements or proposed arrangements, the main benefit of which is to enable any person to obtain an advantage in relation to tax.