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The Tax Avoidance Schemes (Penalty) (Amendment) Regulations 2010

Draft. This instrument was laid in draft and may differ from the one made. Look for the made version under its title.

Draft 2010, ISBN 9780111502693

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

This draft statutory instrument has been printed in substitution of the draft of the same title laid before the House of Commons on 26th July 2010 and published on 27th July 2010, and is being issued free of charge to all known recipients of that draft statutory instrument.

These draft Regulations are laid before the House of Commons under section 98C(2F)(c) of the Taxes Management Act 1970, for approval by resolution of the House of Commons.

Taxes

Made ***

Coming into force 1st January 2011

A draft of these Regulations was laid before, and approved by, the House of Commons under section 98C(2F)(c) of the Taxes Management Act 1970f1.

Accordingly the Treasury make the following Regulations in exercise of the powers conferred by section 98C(2C)(a) of the Taxes Management Act 1970.

Annotations to the whole text

Footnotes

f1

1970 c. 9. Section 98C was inserted by section 315(1) of the Finance Act 2004 (c. 12) and subsequently amended by section 108(9) of, and Schedule 27 to, the Finance Act 2007 (c. 11); section 116(1) of, and Schedule 38 to, the Finance Act 2008 (c. 9); and Schedule 17 to the Finance Act 2010 (c. 13).

Contents

  1. 1Citation and commencement
  2. 2Amendment of the Tax Avoidance Schemes (Penalty) Regulations 2007
  3. 3Amendment of the Tax Avoidance Schemes (Penalty) Regulations 2007
  4. 4Amendment of the Tax Avoidance Schemes (Penalty) Regulations 2007
  5. Signature
  6. Explanatory note

1Citation and commencement

These Regulations may be cited as the Tax Avoidance Schemes (Penalty) (Amendment) Regulations 2010 and come into force on 1st January 2011.

2Amendment of the Tax Avoidance Schemes (Penalty) Regulations 2007

The Tax Avoidance Schemes (Penalty) Regulations 2007f1 are amended as follows.

3Amendment of the Tax Avoidance Schemes (Penalty) Regulations 2007

For regulation 3 substitute—

“3.

For the purposes of section 98C(2A) of TMA 1970, the prescribed sum is £5,000.”

4Amendment of the Tax Avoidance Schemes (Penalty) Regulations 2007

For regulation 4 substitute—

“4.

For the purposes of section 98C(2B) of TMA 1970, the prescribed sum is £5,000.”

Signature

Name

Name

Two of the Lords Commissioners of Her Majesty’s Treasury

Date

Explanatory note

(This note is not part of the Regulations)

These Regulations prescribe the amount of the two daily penalties imposed by section 98C of the Taxes Management Act 1970 (c. 9) in certain circumstances. Section 98C penalises the failure to comply with the notification requirements of Part 7 of the Finance Act 2004 (c. 12). Part 7 of the Finance Act 2004 was amended by the Finance Act 2007 (c. 11) to create new obligations on promoters to provide information in respect of tax avoidance schemes. The initial penalty under section 98C(1)(a) was amended by the Finance Act 2010 (c. 13) to include a daily penalty. The daily penalties are increased where there is a failure to provide information following the making of an order under sections 306A and 314A of the Finance Act 2004.

A full Impact Assessment of the effect that this instrument will have on the costs of business and the voluntary sector is available at http://webarchive.nationalarchives.gov.uk/20091222074811/http://hmrc.gov.uk/budget2010/strength-revise-dotas-ia-5295.pdf.