Explanatory note

These Regulations prescribe circumstances in which a person is not to be treated as a promoter in relation to tax avoidance schemes for the purposes of Part 7 of the Finance Act 2004 (“the 2004 Act”).

Regulation 1 provides for the citation, commencement and interpretation of the Regulations.

Regulation 2 prescribes circumstances in which a company is not to be treated as a promoter. The circumstances prescribed are those in which the promoter and the company to whom services relating to taxation are provided are members of the same group.

Regulation 3 prescribes circumstances in which a person is not to be treated as a promoter. The circumstances prescribed are those in which the person is an employee of an employer who is either a promoter of, or a person entering into any transaction forming part of, proposed arrangements or arrangements.

Regulation 4 prescribes various circumstances in which a person to some extent responsible for the design of proposed arrangements or arrangements is not to be treated as a promoter under section 307(1)(a)(i) or (b)(i) of the 2004 Act.

Regulation 5 prescribes circumstances in which a person is not to be treated as a promoter under section 307(1)(b)(ii) of the 2004 Act. The circumstances prescribed are those in which the person is not connected with another person who is a promoter under section 307(1)(a)(i) or (b)(i) of that Act in relation to arrangements or substantially similar arrangements.

These Regulations do not impose any new costs on business.