Consultation outcome

Strengthening tax avoidance sanctions and deterrents: discussion document

From:: HM Revenue & Customs
Published: 17 August 2016
Last updated: 5 December 2016 — See all updates

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Strengthening tax avoidance sanctions and deterrents - summary of responses

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Detail of outcome

This document provides a summary of responses to our consultation on sanctions and deterrents for enablers and users of tax avoidance which is defeated by HMRC.

The following proposals will be taken forward:

the introduction of a penalty for those who design, sell or otherwise enable the use of tax avoidance arrangements which are defeated by HMRC
the removal of the defence of having relied on non-independent advice as evidence of taking “reasonable care” when considering penalties for taxpayers who use such avoidance schemes which HMRC defeats

Original consultation

Consultation description

As announced at Budget 2016, this consultation proposes a new penalty for those who enable tax avoidance and changes to the existing penalty legislation which applies to those who use avoidance which is defeated.

It also provides an overview of the chain of decisions avoidance users face as they consider trying to avoid tax and considers how best to influence these decisions.

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