# The Tax Avoidance Schemes (Prescribed Descriptions of Arrangements) (Amendment) Regulations 2016, Note: Explanatory note


(This note is not part of the Regulations)
These Regulations amend the Tax Avoidance Schemes (Prescribed Descriptions of Arrangements) Regulations 2006 (S.I. 2006/1543) (“the 2006 Regulations”). They extend the scope of the confidentiality and premium fee hallmarks to include inheritance tax; make changes to aspects of the standardised tax products and losses hallmarks; and introduce a new hallmark relating to financial products.
Regulation 1 provides for citation, commencement and effect.
Regulation 2 introduces the amendments to the 2006 Regulations.
Regulation 3 amends regulation 2 of the 2006 Regulations.
Regulation 4 amends regulation 5 of the 2006 Regulations to extend the scope of the confidentiality and premium fee hallmarks to arrangements involving inheritance tax.
Regulation 5 updates a reference to the Income Tax Act 2007 to reflect that it has been defined in regulation 2 as the ITA 2007.
Regulation 6 substitutes a new description of standardised tax products hallmark in the 2006 Regulations. The amendment changes how the hallmark works by requiring the informed observer to consider all aspects of the test, rather than the previous position where the observer was required only to consider the purpose of the arrangements.
Regulation 7 removes the grandfathering provision from regulation 11 of the 2006 Regulations, updates statutory references and makes arrangements prescribed under regulation 10 subject to the exception in regulation 21.
Regulation 8 substitutes a new description of the Loss Scheme hallmark in the 2006 Regulations. The amendment refines the targeting of the hallmark by requiring the informed observer to consider whether the provision of losses is a main benefit, rather than the main benefit, and to consider whether the arrangements or their structure contain elements which are unlikely to have been entered were it not for the provision of those losses.
Regulation 9 inserts new regulations 19, 20 and 21 into the 2006 Regulations. New regulation 19 prescribes arrangements, for the purposes of section 306 of the Finance Act 2004, where certain conditions are met. Condition 1 is that one or more of the financial products specified by new regulation 20 has been used as part of the arrangements. Conditions 2 to 4 relate to particular circumstances which may exist in respect of such arrangements. New regulation 21 sets out arrangements that are excepted from new regulation 19.
A Tax Information and Impact Note covering this instrument was published on the 10th December 2014 alongside the Autumn Statement 2014 and is available on the HMRC website at https://www.gov.uk/government/collections/tax-information-and-impact-notes-tiins. It remains an accurate summary of the impacts that apply to this instrument.

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Source: https://www.legislation.gov.uk/uksi/2016/99/note (the official version)
Page: https://openlegislation.uk/tax-avoidance-schemes-prescribed-descriptions-of-arrangements-amendment-regulations-2016/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.