Regulation 8 Description 3: Premium FeeI1
United Kingdom
Arrangements are prescribed if they are such that it might reasonably be expected that a promoter or a person connected with a promoter of arrangements that are the same as, or substantially similar to, the arrangements in question, would, but for the requirements F1of these Regulations, be able to obtain a premium fee from a person experienced in receiving services of the type being provided.
But arrangements are not prescribed by this regulation if—
- (a)
no person is a promoter in relation to them; and
- (b)
the tax advantage which may be obtained under the arrangements is intended to be obtained by an individual or a business which is a small or medium-sized enterprise.
- (a)
For the purposes of paragraph (1), and in relation to any arrangements, a “premium fee” is a fee chargeable by virtue of any element of the arrangements (including the way in which they are structured) from which the tax advantage expected to be obtained arises, and which is—
to a significant extent attributable to that tax advantage, or
to any extent contingent upon the obtaining of that tax advantage F2as a matter of law.
Annotations
Textual amendments
- F1
Word in reg. 8(1) substituted (1.1.2011) by The Tax Avoidance Schemes (Prescribed Descriptions of Arrangements) (Amendment) Regulations 2010 (S.I. 2010/2834), regs. 1, 7(2)
- F2
Words in reg. 8(2)(b) inserted (1.1.2011) by The Tax Avoidance Schemes (Prescribed Descriptions of Arrangements) (Amendment) Regulations 2010 (S.I. 2010/2834), regs. 1, 7(3)