Tackling promoters of tax avoidance
Published 28 October 2026
© Crown copyright 2026
This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open-government-licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gov.uk.
Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned.
This publication is available at https://www.gov.uk/government/publications/changes-to-the-promoters-of-tax-avoidance-scheme-legislation/tackling-promoters-of-tax-avoidance
Who is likely to be affected
This package of measures is targeted at promoters of tax avoidance schemes.
General description of the measure
The government will introduce legislation in Finance Bill 2026-27 to amend the Promoters of Tax Avoidance Schemes (POTAS) legislation to make sure that the regime works more effectively. These changes involve:
-
moving VAT and indirect taxes fully into POTAS enabling HMRC to tackle schemes avoiding indirect taxes by publishing the details of the schemes as well as those promoting them using section 86 of Finance Act 2022, by issuing stop notices for such schemes more widely, and enabling HMRC to issue conduct and monitoring notices
-
allowing for earlier publication of the names of promoters subject to a stop notice
The government also intends to make a minor correction to section 209 of Finance Act 2026.
Policy objective
This policy maintenance package supports the effective working of the POTAS regime enabling HMRC to continue to tackle promoters of tax avoidance. This package will support the government to tackle the tax gap whilst alerting taxpayers to help prevent them from entering into these arrangements in the first place.
Background to the measure
At Tax Update Day 2026 the government announced that it would introduce a small package of measures to amend existing legislation aimed at tackling promoters of tax avoidance. This included changes to the POTAS legislation to extend it more fully to cover VAT avoidance schemes and to allow HMRC to publish the details of those subject to a stop notice more quickly. There was no formal consultation on this package, but members of the tax profession and others were engaged.
The POTAS regime was introduced to change the future behaviour of a small and persistent minority of promoters of tax avoidance exhibiting high risk behaviours and to deter the development and use of tax avoidance arrangements by influencing the behaviour of promoters, their intermediaries, and clients. The changes in this package will make sure that the POTAS regime operates more effectively and in line with the objectives outlined above.
Except for defeat notices and POTAS stop notices, the POTAS legislation does not currently cover VAT and indirect taxes. This is a gap in the scope of the regime meaning that most of the POTAS legislation cannot be used to tackle these schemes and alert taxpayers to the risks of entering them. This legislation brings VAT and indirect tax avoidance in line with other tax avoidance and allows the full suite of POTAS powers can be used to address these risks.
When publishing the details of those subject to a POTAS stop notice, due to restrictions in the POTAS legislation, HMRC currently publishes this information without details identifying the promoter prior to the end of the appeal period. This includes an appeal to the tribunal against a refusal to grant a request for the stop notice to cease to have effect. The government will remove this restriction to allow HMRC to publish this information more quickly, helping to alert taxpayers to the risks of these schemes.
Detailed proposal
Operative date
This package will become operative upon Royal Assent of the Finance Bill 2026-27.
Current law
The POTAS legislation is set out in Part 5 of Finance Act 2014 (promoters of tax avoidance schemes).
The legislation for publications about stop notices is set out in section 236H of Finance Act 2014.
Section 209(6) of Finance Act 2026 contains a definition of legal professional privilege in Scotland.
Proposed revisions
To extend the POTAS regime fully to indirect taxes the government intends to amend sections 283, 281A, 234 of, and Schedule 34 to, Finance Act 2014. This will enable HMRC to tackle schemes avoiding indirect taxes by publishing the details of the schemes as well as those promoting them using section 86 of Finance Act 2022, by issuing stop notices for such schemes more widely, and enabling HMRC to issue conduct and monitoring notices.
Making the change to publications about stop notices involves amending section 236H of Finance Act 2014 to allow earlier publication of the names of promoters and schemes subject to a stop notice. The government will also introduce a requirement to publish that there is an appeal against a refusal to grant a request for the stop notice to cease to have effect or any subsequent appeal against a decision to confirm the refusal.
The government intends to make a minor correction to section 209(6) of Finance Act 2026 to include the correct term for legal professional privilege in Scotland.
Summary of impacts
Exchequer impact (£million)
| 2026 to 2027 | 2027 to 2028 | 2028 to 2029 | 2029 to 2030 | 2030 to 2031 | 2031 to 2032 |
|---|---|---|---|---|---|
| Nil | Nil | Nil | Nil | Nil | Nil |
This measure is not expected to have an Exchequer impact as it contains changes to make sure existing legislation remains effective and is more consistent across different taxes.
Economic impact
This measure is not expected to have any significant macroeconomic impacts.
Impact on individuals, households and families
This measure is targeted at promoters of tax avoidance and is not expected to have any significant impact on individuals.
This measure is not expected to impact on family formation, stability and breakdown.
This measure is not expected overall to have an impact on individuals’ experience of dealing with HMRC since it deals with tax avoidance.
Equalities impacts
This measure only affects promoters of tax avoidance schemes, therefore it is not anticipated that there will be disproportionate impacts on any protected groups.
Administrative impact on business including civil society organisations
This measure is targeted at promoters of tax avoidance, and it is not anticipated it would impact compliant businesses.
This measure will not impact civil society organisations.
This measure is not expected overall to have an impact on businesses’ experience of dealing with HMRC since it deals with tax avoidance.
Operational impact (£million) (HMRC or other)
There will be no operational impact for HMRC.
Other impacts
Other impacts have been considered and none have been identified.
Monitoring and evaluation
Consideration will be given to monitoring this measure through assessing the number, and timing, of new publications and by regular communication with taxpayers and professional bodies.
Further advice
If you have any questions about this change, contact Kristian Jarvis – Counter Avoidance by telephone 03000 585747 or email kristian.jarvis1@hmrc.gov.uk.