Made | 12th March 2007 | ||
Laid before Parliament | 12th March 2007 | ||
Coming into force | 1st May 2007 |
Interpretation
2.
In these Regulations—
Structure of the Regulations
3.
Regulations 4 to 13 make provision corresponding to Part 7 (other than section 314 (legal professional privilege [6]) in so far as that Part applies to notifiable contribution arrangements and proposals.
Regulations 14 to 15 make provision corresponding to section 98C of the Taxes Management Act 1970 (penalties for failure to comply with Part 7 of the Finance Act 2004)[7] and other provisions of the Taxes Management Act 1970 so far as they relate to a penalty under that section.
Regulations 16 to 18 modify regulations made under Part 7 in so far as they apply to notifiable contribution arrangements and proposals.
which fall within any description prescribed by the Tax Avoidance Schemes (Prescribed Description of Arrangements) Regulations 2006[8] as modified by these Regulations.
(2) The Table below shows which of the following regulations corresponds to which provision of Part 7.
Section within Part 7 | Corresponding provision of these Regulations |
Section 306 (meaning of "notifiable arrangements" and "notifiable proposals"). | Regulation 5 |
Section 307 (meaning of "promoter") | Regulation 6 |
Section 308 (duties of promoter) | Regulation 7 |
Section 309 (duty of person dealing with promoter outside the United Kingdom | Regulation 8 |
Section 310 (duty of parties to notifiable arrangements not involving promoter) | Regulation 9 |
Section 311 (arrangements to be given reference number)) | Regulation 10 |
Section 312 (duty of promoter to notify client of number) | Regulation 11 |
Section 313 (duty of parties to notifiable arrangements to notify Board of number etc) | Regulation 12 |
Section 316 (information to be provided in form and manner specified by the Commissioners) | Regulation 13 |
Meaning of promoter
6.
—(1) For the purposes of this Part a person is a promoter—
(b) in relation to notifiable contribution arrangements, if he is by virtue of sub-paragraph (a)(ii) a promoter in relation to a notifiable contribution proposal which is implemented by those arrangements or if, in the course of a relevant business, he is to any extent responsible for—
(2) In this regulation "relevant business" means any trade, profession or business which—
(3) For the purposes of this regulation anything done by a company is to be taken to be done in the course of a relevant business if it is done for the purposes of a relevant business falling within paragraph (2)(b) carried on by another company which is a member of the same group.
(4) Section 170 of the Taxation of Chargeable Gains Act 1992[12] has effect for determining for the purposes of paragraph (3) whether two companies are members of the same group, but as if in that section—
(5) A person is not to be treated as a promoter for the purposes of this Part by reason of anything done in circumstances prescribed by the Tax Avoidance Schemes (Promoters and Prescribed Circumstances) Regulations 2004[13] as modified by these Regulations
Duties of promoter
7.
—(1) The promoter must, within the prescribed period after the relevant date, provide the Commissioners with the information required by the Information Regulations relating to any notifiable contribution proposal.
(2) In paragraph (1) "the relevant date" means the earlier of the following—
(3) The promoter must, within the period prescribed by the Information Regulations after the date on which he first becomes aware of any transaction forming part of any notifiable contribution arrangements, provide the Commissioners with prescribed information relating to those arrangements, unless those arrangements implement a proposal in respect of which notice has been given under paragraph (1).
(4) Where two or more persons are promoters in relation to the same notifiable contribution proposal or notifiable contribution arrangements, compliance by any of them with paragraph (1) or (3) discharges the duty under either of those paragraphs of the other or others.
(5) Where a person is a promoter in relation to two or more notifiable contribution proposals or sets of notifiable contribution arrangements which are substantially the same (whether they relate to the same parties or different parties), he need not provide information under paragraph (1) or (3) if he has already provided information under either of those paragraphs in relation to any of the other proposals or arrangements.
Duty of person dealing with promoter outside United Kingdom
8.
—(1) Any person ("the client") who enters into any transaction forming part of any notifiable contribution arrangements in relation to which—
must provide the Commissioners with the prescribed information relating to the notifiable contribution arrangements within the prescribed period.
(2) Compliance with regulation 7(1) by any promoter in relation to the notifiable contribution arrangements discharges the duty of the client under paragraph (1).
Duty of parties to notifiable contribution arrangements not involving promoter
9.
Any person who enters into any transaction forming part of notifiable contribution arrangements as respects which neither he nor any other person in the United Kingdom is liable to comply with regulation 7 or regulation 8 must at the prescribed time provide the Commissioners with prescribed information relating to the notifiable contribution arrangements.
Arrangements to be given reference number
10.
—(1) Where a person complies with regulation 7(1) or (3), regulation 8(1) or 9 in relation to any notifiable contribution proposal or arrangements, the Commissioners may within 30 days—
except that where the arrangements or proposals concern both national insurance contributions and tax, the Commissioners shall allocate a single reference number in respect of both matters.
(2) The allocation of a reference number to any notifiable contribution arrangements (or proposed notifiable contribution arrangements) is not to be regarded as constituting any indication by the Commissioners that the arrangements could as a matter of law result in the obtaining by any person of an advantage in relation to a contribution.
Duty of promoter to notify client of number
11.
—(1) Any promoter who is providing services to any person ("the client") in connection with notifiable contribution arrangements must, within 30 days after the relevant date, provide the client with prescribed information relating to any reference number that has been notified to the promoter by the Commissioners in accordance with regulation 10 or, where the arrangements are, or are substantially the same as, notifiable arrangements, section 311—
(2) In paragraph (1) "the relevant date" means—
Duty of parties to notifiable contribution arrangements to notify the Commissioners of number, etc.
12.
—(1) Any person who is a party to any notifiable contribution arrangements must provide the Commissioners with the prescribed information relating to—
(2) A person is not liable to a penalty under—
by reason of any failure to include in any return or account any reference number or other information required by virtue of regulation 8 of the Information Regulations (but see regulation 14 for the penalty for failure to comply with this regulation).
Information to be provided in form and manner specified by Commissioners
13.
The information required by regulations 7(1) or (3), 8(1), 9, 11(1) or 12(1) must be provided in a form and manner specified by the Commissioners.
This is subject to paragraph (6).
(2) Those provisions are—
(3) A person who fails to comply with regulation 12(1) (duty of parties to notifiable contribution arrangements to notify the Commissioners of number, etc.) shall be liable to a penalty of the relevant sum.
(4) In paragraph (3) "the relevant sum" means—
(5) In paragraph (4) above "scheme" means any notifiable contribution arrangements.
(6) Where the notifiable contribution arrangement or notifiable contribution proposal is, or is substantially the same as, a notifiable arrangement or a notifiable proposal under Part 7 in relation to which a penalty has been imposed under section 98C of the Taxes Management Act 1970[15] in respect of a failure to comply with the provisions of Part 7, this regulation shall not apply to impose a penalty in respect of the failure to comply with the corresponding provision of these Regulations.
Modification of Part 10 of the Taxes Management Act 1970
15.
—(1) Part 10 of the Taxes Management Act 1970 so far as it relates to a penalty under section 98C of that Act shall apply in relation to a penalty under regulation 14 with the following modifications.
(2) In section 100 (determination of penalties by officer of Board) for subsection (2)(f) (penalties to which subsection (1) of the section does not apply)[16] substitute—
(3) In section 100C[17] (penalty proceedings before Commissioners) for subsection (1A) substitute—
(4) In Part 3—
(5) In regulation 10 (Description 5: standardarised tax product), in the heading and paragraphs (1) and (3) for "tax product" substitute "national insurance contributions product".
(6) Omit regulations 12 to 17.
The Tax Avoidance Schemes (Information) Regulations 2004
17.
—(1) The Tax Avoidance Schemes (Information) Regulations 2004[19]("the Information Regulations") apply to notifiable contribution arrangements and notifiable contribution proposals with the following modifications and any reference in those Regulations to sections 306 to 313 shall be construed as a reference to the corresponding provision of these Regulations (see regulation 4(2)).
(2) Omit regulation 1(2).
(3) In regulation 2[20](interpretation)—
(4) In regulation 3 (prescribed information in respect of notifiable proposals and arrangements) wherever the words appear—
(5) In regulation 4 (time for providing information under section 308, 309 or 310)—
(6) Omit regulation 5 (statutory clearances).
(7) For regulation 8 (prescribed information under section 313: timing and manner of delivery) substitute—
(b) the prescribed time at which a person who is a party to notifiable contribution arrangements must provide the Commissioners with information under that regulation is any time before the date specified in paragraph 22(1) of Schedule 4 to the Social Security (Contributions) Regulations 2001[23].
(2) In the case of a person who is the employer of an employee, by reason of whose employment an advantage is expected to arise to any person in respect of national insurance contributions as a result of notifiable contribution arrangements, the prescribed information shall be notified to the Commissioners on a return in such form as they may specify by the time prescribed in paragraph (1)(b).".
(8) In regulation 10 (electronic delivery of information)—
(b) in paragraph (3)(a) for "regulations under section 132 of the Finance Act 1999" substitute "Part 7A of the Social Security (Contributions Regulations) 1991".
The Tax Avoidance Schemes (Promoters and Prescribed Circumstances) Regulations 2004
18.
—(1) The Tax Avoidance Schemes (Promoters and Prescribed Circumstances) Regulations 2004[25] apply to notifiable contribution arrangements and notifiable contribution proposals as they apply to income tax with the following modifications and any reference in those Regulations to sections 306 to 313 shall be construed as a reference to the corresponding provision of these Regulations (see regulation 4(2)).
(2) In regulation 1 (citation, commencement and interpretation) for paragraph (2) substitute—
(3) In regulation 4 (persons not to be treated as promoters under section 307(1)(a)(i) or (b)(i))—
(4) In regulation 6 (legal professional privilege) for "section 314" substitute "section 132A(6) of the Social Security Administration Act 1992".
Dave Watts
Frank Roy
Two of the Lords Commissioners of Her Majesty's Treasury
12th March 2007
[2] "Notifiable contribution proposal" and "notifiable contribution arrangements" are defined in regulation 5 of these Regulations.back
[3] "Promoter" is defined in regulation 6 of these Regulations.back
[6] Section 132A(6) makes provision which corresponds to that made by section 314 and prevents the making of regulations which would limit its application.back
[7] Section 98C was inserted by sections 315(1) and 319 of the Finance Act 2004.back
[9] The definitions of "notifiable contribution arrangements" and "notifiable contribution proposal" are set out in section 132A(3) of the Social Security Administration Act 1992.back
[10] 1988 c.1. Section 840A was inserted by paragraph 1(1) of Schedule 37 to the Finance Act 1996 (c. 8) and amended by sections 281 and 284 of, and paragraph 36 of Schedule 35 to, the Finance Act 2004 and articles 2(1) and (2), 13 and 46 of S.I. 2001/3629.back
[11] Section 209A was inserted by section 102(2) and (3) of the Finance Act 2002 (c. 23).back
[13] S.I. 2004/1865 as amended by regulation 2 of S.I. 2004/2613.back
[14] 1970 c.9. This section applies by virtue of paragraph 7(1) of Schedule 1 to the Social Security Contributions and Benefits Act 1992 (c.4).back
[15] Section 98C was inserted by sections 315(1) and 319 of the Finance Act 2004.back
[16] Section 100 was substituted by section 167 of the Finance Act 1989 (c.26) and paragraph (2)(f) was inserted by sections 315(2) and 319 of the Finance Act 2004.back
[17] Section 100C was inserted by section 167 of the Finance Act 1989 (c.26) and subsection (1A) of that section was inserted by sections 315(3) and 319 of the Finance Act 2004(c. 12).back
[19] S.I. 2004/1864. These Regulations were amended by S.I. 2004/2613, 2005/1869, 2006/1544.back
[20] Regulation 2 was itself amended by regulations 2 and 3 of S.I. 2005/1869.back
[21] This definition was inserted by regulation 3 of S.I. 2005/1869.back
[22] These references were inserted by regulation 4 of S.I. 2005/1869.back
[23] S.I. 2001/1004. Paragraph 22 has been amended: the relevant amendment is that made by regulation 32(12)(a) of S.I. 2004/770.back
[24] Part 7A was inserted by regulations 2 and 23 of the Social Security (Contributions, Categorisation of Earners and Intermediaries)(Amendment) Regulations 2004 (S.I. 2004/770).back
[25] S.I. 2004/1865 as amended by regulation 2 of S.I. 2004/2613.back