Paragraph 3 I1

F1(1)

For the purposes of this Schedule, a person “engages in sanctionable conduct” if, in the course of acting as a tax adviser, the person does something with the intention of bringing about a loss of tax revenue.

(2)

It does not matter whether a loss is actually brought about.

(3)

Nor does it matter whether the F2person is acting on the instruction of clients.

(4)

A loss of tax revenue would be brought about for these purposes if clients were to—

(a)

account for less tax than they are required to account for by law,

(b)

obtain more tax relief than they are entitled to obtain by law,

(c)

account for tax later than they are required to account for it by law, or

(d)

obtain tax relief earlier than they are entitled to obtain it by law.

(5)

“Tax” is defined in Part 6 of this Schedule.

(6)

“Tax relief” includes—

(a)

any exemption from or deduction or credit against or in respect of tax, and

(b)

any repayment of tax.

F3(7)

A reference in this paragraph to doing something includes omitting to do something.

Annotations

Textual amendments

F1: Sch. 38 para. 3(1) substituted (1.4.2026) by Finance Act 2026 (c. 11), s. 250(2), Sch. 22 para. 5(2)(a)
F2: Word in Sch. 38 para. 3(3) substituted (1.4.2026) by Finance Act 2026 (c. 11), s. 250(2), Sch. 22 para. 5(2)(b)
F3: Sch. 38 para. 3(7) substituted (1.4.2026) by Finance Act 2026 (c. 11), s. 250(2), Sch. 22 para. 5(2)(c)

Commencement

I1: Sch. 38 para. 3 in force at 1.4.2013 by S.I. 2013/279, art. 2

Notes on Schedule 38

Textual amendments

F1: Sch. 38 heading substituted (1.4.2026) by Finance Act 2026 (c. 11), s. 250(2), Sch. 22 para. 2

Modifications

C1: Sch. 38 applied by S.I. 2009/470, reg. 33(1) (as substituted (6.4.2013) by The Education (Student Loans) (Repayment) (Amendment) Regulations 2013 (S.I. 2013/607), regs. 1(1), 9)
C2: Sch. 38 applied (with application in accordance with reg. 1 of the amending S.I.) by The Education (Postgraduate Masters Degree Loans) Regulations 2016 (S.I. 2016/606), regs. 1(1), 24(2)
C3: Sch. 38 applied (with application in accordance with reg. 1 of the amending S.I.) by The Education (Postgraduate Masters Degree Loans) Regulations 2016 (S.I. 2016/606), regs. 1(1), 43(1)
C4: Sch. 38 applied (with application in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 41 (as amended (1.4.2026) by Finance Act 2026 (c. 11), s. 250(2), Sch. 22 para. 35)

Notes on Sanctionable conduct

Textual amendments

F1: Word in Sch. 38 para. 3 cross-heading substituted (1.4.2026) by Finance Act 2026 (c. 11), s. 250(2), Sch. 22 para. 5(1)