PART 1 Introduction

Citation and commencement_I1

1. These Regulations may be cited as the National Insurance Contributions (Application of Part 7 of the Finance Act 2004) Regulations 2012 and shall come into force on 1st September 2012.

Interpretation_I2

2. In these Regulations—

“the Descriptions Regulations” means the Tax Avoidance Schemes (Prescribed Descriptions of Arrangements) Regulations 2006 ( 2 )as modified by these Regulations;

[^F1 “employer” means the secondary contributor determined under—

“the Information Regulations” means the Tax Avoidance (Information) Regulations 2012 ( 3 ) as modified by these Regulations.

“introducer”, in relation to a notifiable contribution proposal, has the meaning given by regulation 7(2);

“HMRC” means the Commissioners for Her Majesty’s Revenue and Customs;

“notifiable arrangements” and “notifiable proposal” have the meaning given to them in section 306 of the Finance Act 2004 ( 4 );

“Part 7” means Part 7 of the Finance Act 2004 (disclosure of tax avoidance schemes) ( 5 ) and a reference to a numbered section (without more) is a reference to a section of Part 7;

“prescribed” means prescribed by the Information Regulations, unless the context otherwise requires;

“promoter”, in relation to notifiable contribution arrangements or a notifiable contribution proposal, has the meaning given by regulation 7;

“reference number” means [^F2 a reference number ^F2] allocated under regulation 12 or section 311 as the case may be;

“tribunal” means the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal.

[^F3 “working day” means a day which is not a Saturday or a Sunday, Christmas Day, Good Friday or a bank holiday under the Banking and Financial Dealings Act 1971 in any part of the United Kingdom. ^F3]

Structure of the Regulations_I3

3.—(1) Regulations 5 to [^F421D^F4] make provision corresponding to Part 7 (other than section 314 (legal professional privilege)) in so far as that Part applies to income tax.

(2) Regulations 22 to 24 make provision corresponding to section 98C and section 118(2) of the Taxes Management Act 1970(6) (penalties for failure to comply with Part 7 of the Finance Act 2004) and other provisions of the Taxes Management Act 1970 in so far as they relate to a penalty under section 98C.

(3) Regulations 25 to 28 modify regulations made under Part 7 in so far as they apply to income tax.

Revocations_I4

4.—(1) The regulations described in Regulation 29 are revoked.

(2) Anything begun under or for the purpose of any regulations revoked by these Regulations shall be continued under or, as the case may be, for the purpose of the corresponding provision of these Regulations.

(3) Where any document refers to a provision of a regulation revoked by these Regulations, such reference shall, unless the context otherwise requires, be construed as a reference to the corresponding provision of these Regulations.

PART 2 Provisions corresponding to Part 7 of the Finance Act 2004

Application of Part 2_I5

5.—(1) This Part applies to—

(a)notifiable contribution arrangements; and

(b)notifiable contribution proposals

which fall within any description prescribed by the Descriptions Regulations.

[^F5 (1A) This Part also applies to arrangements and proposals which HMRC reasonably suspect to be notifiable contribution arrangements or notifiable contribution proposals (as the case may be).^F5]

(2) The Table below shows which of the following regulations corresponds to which provision of Part 7.

Doubt as to notifiabilty_I6

6.—(1) HMRC may apply to the tribunal for an order that—

(a)a proposal is to be treated as a notifiable contribution proposal; or

(b)arrangements are to be treated as notifiable contribution arrangements.

(2) An application must specify—

(a)the proposal or arrangements in respect of which the order is sought; and

(b)the promoter.

(3) On an application the tribunal may make the order only if satisfied that HMRC—

(a)have taken all reasonable steps to establish whether the proposal is a notifiable contribution proposal or the arrangements are notifiable contribution arrangements; and

(b)have reasonable grounds for suspecting that the proposal may be a notifiable contribution proposal or the arrangements may be notifiable contribution arrangements.

(4) Reasonable steps under paragraph (3)(a) may (but need not) include taking action under regulation 17 or 18.

(5) Grounds for suspicion under paragraph (3)(b) may include—

(a)the fact that the relevant arrangements fall within a description prescribed by the Descriptions Regulations;

(b)an attempt by the promoter to avoid or delay providing information or documents about the proposal or arrangements under or by virtue of regulation 17 or 18;

(c)the promoter’s failure to comply with a requirement under or by virtue of regulation 17 or 18 or section 313A or 313B in relation to another proposal or other arrangements.

(6) Where an order is made under this regulation in respect of a proposal or arrangements, the period for the purposes of paragraphs (1) and (3) of regulation 8 is that prescribed.

(7) An order under this regulation in relation to a proposal or arrangements is without prejudice to the possible application of regulation 8, other than by virtue of this regulation, to the proposal or arrangements.

Meaning of promoter_I7

7.—(1) For the purposes of this Part a person is a promoter—

(a) in relation to a notifiable contribution proposal if, in the course of a relevant business, the person (“P”) –

(i)is to any extent responsible for the design of the proposed arrangements;

(ii) makes a firm approach to another person (“C”) in relation to the proposal with a view to P making the proposal available for implementation by C or any other person; or

(iii)makes the notifiable contribution proposal available for implementation by other persons; and

(b) in relation to notifiable contribution arrangements, if the person (“P”) is by virtue of sub-paragraph (a)(ii) or (iii) a promoter in relation to a notifiable contribution proposal which is implemented by those arrangements or if, in the course of a relevant business, P is to any extent responsible for—

(i)the design of the arrangements, or

(ii)the organisation or management of the arrangements.

(2) For the purposes of this Part a person is an introducer in relation to a notifiable contribution proposal if the person makes a marketing contact with another person in relation to the proposal.

(3) In this regulation “relevant business” means any trade, profession or business which—

(a)involves the provision to other persons of services relating to national insurance contributions, or

(b)is carried on by a bank, as defined by section 1120 of the Corporation Tax Act 2010(7), or by a securities house, as defined by section 1009(3) of that Act.

(4) For the purposes of this regulation anything done by a company is to be taken to be done in the course of a relevant business if it is done for the purposes of a relevant business falling within paragraph (3)(b) carried on by another company which is a member of the same group.

(5) Section 170 of the Taxation of Chargeable Gains Act 1992(8) has effect for determining for the purposes of paragraph (4) whether two companies are members of the same group, but as if in that section—

(a)for each of the references to a 75% subsidiary there were substituted a reference to a 51% subsidiary, and

(b)subsection (3)(b) and subsections (6) to (8) were omitted.

^F19(6) For the purposes of this Part a person makes a firm approach to another person in relation to a ... proposal if the person makes a marketing contact with the other person in relation to the proposal at a time when the proposed arrangements have been substantially designed.

(7) For the purposes of this Part a person makes a marketing contact with another person in relation to a notifiable contribution proposal if—

(a)the person communicates information about the proposal to the other person;

(b)the communication is made with a view to that other person, or any other person, entering into transactions forming part of the proposed arrangements; and

(c)the information communicated includes an explanation of the advantage in relation to any contribution that might be expected to be obtained from the proposed arrangements.

(8) For the purposes of paragraph (6) [^F20proposed arrangements^F20] have been substantially designed at any time if by that time the nature of the transactions to form part of them has been sufficiently developed for it to be reasonable to believe that a person who wished to obtain the advantage mentioned in paragraph (7)(c) might enter into—

(a)transactions of the nature developed; or

(b)transactions not substantially different from transactions of that nature.

(9) A person is not to be treated as a promoter or introducer for the purposes of this Part by reason of anything done in circumstances prescribed by the Tax Avoidance Schemes (Promoters and Prescribed Circumstances) Regulations 2004(9) as modified by these Regulations.

(10) In the application of this Part to a proposal which is not a notifiable contribution proposal or arrangements which are not notifiable contribution arrangements, a reference to a promoter or introducer is a reference to a person who would be a promoter or introducer under paragraphs (1) to (9) if the proposal were a notifiable contribution proposal or arrangements were notifiable contribution arrangements.

Duties of promoter_I8

8.—(1) A person who is a promoter in relation to a notifiable contribution proposal must, within the prescribed period after the relevant date, provide HMRC with the prescribed information relating to the notifiable contribution proposal.

(2) In paragraph (1) “the relevant date” means the earliest of the following—

(a)the date on which the promoter first makes a firm approach to another person in relation to a notifiable contribution proposal;

(b)the date on which the promoter makes the notifiable contribution proposal available for implementation by any other person; or

(c)the date on which the promoter first becomes aware of any transaction forming part of notifiable contribution arrangements implementing the notifiable contribution proposal.

(3) A person who is a promoter in relation to notifiable contribution arrangements must, within the prescribed period after the date on which the person first becomes aware of any transaction forming part of the notifiable contribution arrangements, provide HMRC with the prescribed information relating to those arrangements, unless those arrangements implement a proposal in respect of which notice has been given under paragraph (1).

(4) Paragraph (5) applies where a person complies with paragraph (1) in relation to a notifiable contribution proposal for arrangements and another person is—

(a)also a promoter in relation to the notifiable contribution proposal or is a promoter in relation to a notifiable contribution proposal for arrangements which are substantially the same as the proposed arrangements (whether they relate to the same or different parties); or

(b)a promoter in relation to notifiable contribution arrangements implementing the notifiable contribution proposal or notifiable contribution arrangements which are substantially the same as notifiable contribution arrangements implementing the notifiable contribution proposal (whether they relate to the same or different parties).

(5) Any duty of the other person under paragraph (1) or (3) in relation to the notifiable contribution proposal or notifiable contribution arrangements is discharged if—

(a)the person who complied with paragraph (1) has notified the identity and address of the other person to HMRC or the other person holds the reference number allocated to the proposed notifiable contribution arrangements under regulation 12; and

(b)the other person holds the information provided to HMRC in compliance with paragraph (1).

(6) Paragraph (7) applies where a person complies with section 308(1) in relation to a notifiable proposal and another person is—

(a)a promoter in relation to a notifiable contribution proposal for arrangements which are substantially the same as the notifiable proposal (whether they relate to the same or different parties); or

(b)a promoter in relation to notifiable contribution arrangements which are substantially the same as notifiable arrangements implementing the notifiable proposal (whether they relate to the same or different parties).

(7) Any duty of the other person under paragraph (1) or (3) in relation to the notifiable contribution proposal or notifiable contribution arrangements is discharged if—

(a)the person who complied with section 308(1) in relation to the notifiable proposal has notified the identity and address of the other person to HMRC or the other person holds the reference number allocated to the proposed notifiable arrangements under section 311; and

(b)the other person holds the information provided to HMRC in compliance with section 308(1).

(8) Paragraph (9) applies where a person complies with paragraph (3) in relation to notifiable contribution arrangements and another person is—

(a)a promoter in relation to a notifiable contribution proposal for arrangements which are substantially the same as the notifiable contribution arrangements (whether they relate to the same or different parties); or

(b)also a promoter in relation to the notifiable contribution arrangements or notifiable contribution arrangements which are substantially the same (whether they relate to the same or different parties).

(9) Any duty of the other person under paragraph (1) or (3) in relation to the notifiable contribution proposal or notifiable contribution arrangements is discharged if—

(a)the person who complied with paragraph (3) has notified the identity and address of the other person to HMRC or the other person holds the reference number allocated to the notifiable contribution arrangements under regulation 12; and

(b)the other person holds the information provided to HMRC in compliance with paragraph (3).

(10) Paragraph (11) applies where a person complies with section 308(3) in relation to notifiable arrangements and another person is a promoter in relation to a notifiable contribution proposal for arrangements or notifiable contribution arrangements which are substantially the same as the notifiable arrangements (whether they relate to the same or different parties).

(11) Any duty of the other person under paragraph (1) or (3) in relation to the notifiable contribution proposal or notifiable contribution arrangements is discharged if—

(a)the person who complied with section 308(3) in relation to the notifiable contribution arrangements has notified the identity and address of the other person to HMRC or the other person holds the reference number allocated to the notifiable contribution arrangements under section 311;and

(b)the other person holds the information provided to HMRC in compliance with section 308(3).

(12) Where a person is a promoter in relation to two or more notifiable contribution proposals or sets of notifiable contribution arrangements which are substantially the same (whether they relate to the same parties or different parties), that person need not provide information under paragraph (1) or (3) if that person has already provided information under either of those paragraphs in relation to any of the other contribution proposals or contribution arrangements.

Supplemental information_I9

9.—(1) This regulation applies where—

(a) a promoter (“P”) has provided information in purported compliance with paragraph (1) or (3) of regulation 8; but

(b)HMRC believe that P has not provided all the prescribed information.

(2) HMRC may apply to the tribunal for an order requiring P to provide specified information about, or documents relating to, the notifiable contribution proposal or notifiable contribution arrangements.

(3) The tribunal may make an order under paragraph (2) in respect of information or documents only if satisfied that HMRC have reasonable grounds for suspecting that the information or documents—

(a)form part of the prescribed information; or

(b)will support or explain the prescribed information.

(4) A requirement by virtue of paragraph (2) shall be treated as part of P’s duty under paragraph (1) or (3) of regulation 8.

(5) In so far as P’s duty under paragraph (1) or (3) of regulation 8 arises out of a requirement by virtue of paragraph (2) above, the period for the purposes of those paragraphs of regulation 8 and the date after which it begins are those prescribed.

(6) In so far as P’s duty under paragraph (1) or (3) of regulation 8 arises out of a requirement by virtue of paragraph (2) above, the prescribed period may be extended by HMRC by direction.

Duty of person dealing with promoter outside United Kingdom_I10

10. —(1) Any person (“the client”) who enters into any transaction forming part of any notifiable contribution arrangements in relation to which—

(a)a promoter is resident outside the United Kingdom, and

(b)no promoter is resident in the United Kingdom,

must provide HMRC with the prescribed information relating to the notifiable contribution arrangements within the prescribed period.

(2) Compliance with regulation 8(1) by any promoter in relation to the notifiable contribution arrangements discharges the duty of the client under paragraph (1).

Duty of parties to notifiable contribution arrangements not involving promoter_I11

11. Any person who enters into any transaction forming part of notifiable contribution arrangements as respects which neither that person nor any other person in the United Kingdom is liable to comply with regulation 8 or regulation 10 must at the prescribed time provide HMRC with the prescribed information relating to the notifiable contribution arrangements.

[^F21Duty to provide further information requested by HMRC

11A.—(1) This regulation applies where—

(a)a person has provided the prescribed information about notifiable contribution proposals or notifiable contribution arrangements in compliance with regulation 8, 10 or 11, or

(b)a person has provided information in purported compliance with regulation 10 or 11 but HMRC believe that the person has not provided all the prescribed information.

(2) HMRC may require the person to provide—

(a)further specified information about the notifiable contribution proposals or notifiable contribution arrangements (in addition to the prescribed information under regulation 8, 10 or 11);

(b)documents relating to the notifiable contribution proposals or notifiable contribution arrangements.

(3) Where HMRC impose a requirement on a person under this regulation, the person must comply with the requirement within—

(a)the period of 10 working days beginning with the day on which HMRC imposed the requirement, or

(b)such longer period as HMRC may direct.

Failure to provide information under regulation 11A: application to the Tribunal

11B.—(1) This regulation applies where HMRC—

(a)have required a person to provide information or documents under regulation 11A, but

(b)believe that the person has failed to provide the information or documents required.

(2) HMRC may apply to the tribunal for an order requiring the person to provide the information or documents required.

(3) The tribunal may make an order under paragraph (2) only if satisfied that HMRC have reasonable grounds for suspecting that the information or documents will assist HMRC in considering the notifiable contribution proposals or notifiable contribution arrangements.

(4) Where the tribunal makes an order under paragraph (2), the person must comply with it within—

(a)the period of 10 working days beginning with the day on which the tribunal made the order, or

(b)such longer period as HMRC may direct.^F21]

[^F22Duty of promoters to provide updated information

11C.—(1) This regulation applies where—

(a)information has been provided under regulation 8 about any notifiable contribution arrangements, or proposed notifiable contribution arrangements, to which a reference number is allocated under regulation 12, and

(b)after the provision of information, there is a change in relation to the arrangements of a kind mentioned in paragraph (2).

(2) The changes referred to in paragraph (1)(b) are—

(a)a change in the name by which the notifiable contribution arrangements or proposed notifiable contribution arrangements, are known;

(b)a change in the name or address of any person who is a promoter in relation to the notifiable contribution arrangements or, in the case of proposed notifiable contribution arrangements, the notifiable contribution proposal.

(3) A person who is a promoter in relation to the notifiable contribution arrangements or, in the case of proposed notifiable contribution arrangements, the notifiable contribution proposal must inform HMRC of the change mentioned in paragraph (1)(b) within 30 days after it is made.

(4) Paragraphs (5) and (6) apply for the purposes of paragraph (3) where there is more than one person who is a promoter in relation to the notifiable contribution arrangements or notifiable contribution proposal.

(5) If the change in question is a change in the name or address of a person who is a promoter in relation to the notifiable contribution arrangements or notifiable contribution proposal, it is the duty of that person to comply with paragraph (3).

(6) If a person provides information in compliance with paragraph (3), the duty imposed by that paragraph on any other person, so far as relating to the provision of that information, is discharged.^F22]

[^F23Notice of potential allocation of reference number: arrangements and proposals suspected of being notifiable

11D.—(1) This regulation applies where—

(a)HMRC have become aware that—

(i)a transaction forming part of arrangements has been entered into,

(ii)a firm approach has been made to a person in relation to a proposal for arrangements, with a view to making the proposal available for implementation, or

(iii)a proposal for arrangements is made available for implementation, and

(b)HMRC reasonably suspect that the arrangements are notifiable contribution arrangements, or that the proposal is a notifiable contribution proposal.

(2) HMRC may issue a notice to a person explaining that, unless the person is able to satisfy HMRC, before the end of the notice period, that the arrangements are not notifiable contribution arrangements or (as the case may be) the proposal is not a notifiable contribution proposal, HMRC may allocate a reference number to the arrangements or (in the case of a proposal) the proposed arrangements.

(3) But HMRC may not issue a notice under this regulation before the end of the period of 15 days beginning with the day on which they first become aware that the condition in sub-paragraph (a)(i), (ii) or (iii) of paragraph (1) is met.

(4) A notice under this regulation must be issued to any person who, on the day the notice is issued, HMRC reasonably suspect to be a promoter in relation to the arrangements or proposed arrangements.

(5) A notice under this regulation may be issued to any other person who HMRC reasonably suspect to be involved in the supply of the arrangements or proposed arrangements.^F23]

[^F24Allocation of reference number to arrangements

12.—(1) This regulation applies in—

(a)a paragraph (2) case, or

(b)a paragraph (3) case.

(2) A “paragraph (2) case” is a case where a person complies, or purports to comply, with regulation 8(1) or (3), 10(1) or 11 in relation to any notifiable contribution proposal or notifiable contribution arrangements.

(3) A “paragraph (3) case” is a case where—

(a)notice in relation to arrangements or proposed arrangements has been issued in accordance with regulation 11D (notice of potential allocation of reference number),

(b)the notice period has expired, and

(c)the person to whom the notice was given has failed to satisfy HMRC, before the expiry of the notice period, that the arrangements are not notifiable contribution arrangements or (as the case may be) that the proposal is not a notifiable contribution proposal.

(4) “ The notice period ” means—

(a)the period of 30 days beginning with the day on which the notice under regulation 11D is issued, or

(b)such longer period as HMRC may direct.

(5) HMRC may allocate a reference number to the arrangements, or in the case of a proposal, the proposed arrangements, subject to paragraph (6).

(6) HMRC may not allocate a reference number to arrangements or proposed arrangements after the time limit for doing so.

(7) The time limit for allocating a reference number is—

(a)in a paragraph (2) case, the end of the period of 90 days beginning with the compliance, or purported compliance, with regulation 8(1) or (3), 10(1) or 11, as the case may be;

(b)in a paragraph (3) case, the end of the period of one year beginning with the day after the end of the notice period specified in paragraph (4).

(8) HMRC may at any time withdraw a reference number allocated to arrangements in a paragraph (3) case.

(9) The allocation of a reference number to arrangements or proposed arrangements is not to be regarded as constituting an indication by HMRC that the arrangements could as a matter of law result in the obtaining by any person of an advantage.^F24]

[^F25Duty of HMRC to notify persons of reference number

12A.—(1) If a reference number is allocated in a case within regulation 12(2), HMRC must notify the following of the number—

(a)the person who has complied, or purported to comply, with regulation 8(1) or (3), 10(1) or 11, and

(b)where the person has complied, or purported to comply, with regulation 8(1) or (3), any other person—

(i)who is a promoter in relation to the proposal (or arrangements implementing it) or the arrangements (or a proposal implemented by them), and

(ii)whose identity and address have been notified to HMRC by the person who complied, or purported to comply, with regulation 8(1) or (3).

(2) If a reference number is allocated in a case within regulation 12(3), HMRC must notify the following of the number—

(a)any person who HMRC reasonably suspect to be, or to have been, a promoter in relation to the arrangements or the proposed arrangements, and

(b)any other person who HMRC reasonably suspect to be, or to have been, involved in the supply of the arrangements or the proposed arrangements.

(3) The duty in paragraph (2) applies irrespective of whether the notice under regulation 11D as a result of which the reference number was allocated has been issued to the person concerned.

Right of appeal: regulation 12(3) case

12B.—(1) This regulation applies where HMRC have allocated a reference number to arrangements or proposed arrangements in a case within regulation 12(3).

(2) A person who has been notified of the reference number may appeal to the tribunal against its allocation.

(3) An appeal under this regulation may be brought only on the following grounds—

(a)that, in issuing the notice under regulation 11D as a result of which the reference number was allocated, HMRC did not act in accordance with that regulation;

(b)that, in allocating the reference number, HMRC did not act in accordance with regulation 12;

(c)that the arrangements are not in fact notifiable contribution arrangements or, in the case of proposed arrangements, that the proposal for the arrangements is not in fact a notifiable contribution proposal.

(4) Notice of appeal under this regulation must be given to the tribunal in writing before the end of the period of 30 days beginning with the day on which the person is notified of the number by HMRC.

(5) Notice may be given after that period if the tribunal give permission.

(6) The notice of appeal must specify the grounds of appeal.

(7) On an appeal under this regulation, the tribunal may affirm or cancel HMRC’s decision.

(8) If the tribunal cancel HMRC’s decision, HMRC must withdraw the reference number.

(9) Bringing an appeal under this regulation does not prevent—

(a)a power conferred by this Part from being exercised, or

(b)a duty imposed by this Part from continuing to apply.

Duty to provide further information requested by HMRC: regulation 12(3) case

12C.—(1) This regulation applies where HMRC have allocated a reference number to arrangements or proposed arrangements in a case within regulation 12(3).

(2) HMRC may require a relevant person to provide—

(a)specified information about the arrangements or proposed arrangements;

(b)documents relating to the arrangements or proposed arrangements.

(3) In paragraph (2), “ relevant person ” means—

(a)any person who HMRC reasonably suspect to be, or to have been, a promoter in relation to the arrangements or the proposed arrangements;

(b)any other person who HMRC reasonably suspect to be, or to have been, involved in the supply of the arrangements or the proposed arrangements.

(4) HMRC may require information or documents only if they have reasonable grounds for suspecting that the information or documents will assist them in considering the arrangements or proposed arrangements.

(5) Where HMRC impose a requirement on a person under paragraph (2), the person must comply with the requirement before the end of—

(a)the period of 10 working days beginning with the day on which HMRC imposed the requirement, or

(b)such longer period as HMRC may direct.^F25]

Duty of promoter to notify client of number [^F26: regulation 12(2) case^F26] _I12

13. —(1) This regulation applies where a person who is a promoter in relation to notifiable contribution arrangements is providing (or has provided) services to any person (“the client”) in connection with the notifiable contribution arrangements.

(2) The promoter must, within 30 days after the relevant date, provide the client with the prescribed information relating to any reference number[^F27 allocated in a case within regulation 12(2) or section 311(2)^F27] (or, if more than one, any [^F28one such reference number^F28] ) that has been notified to the promoter (whether by HMRC or any other person) in relation to—

(a)the notifiable contribution arrangements; or

(b)any arrangements, including notifiable arrangements, which are substantially the same as the notifiable contribution arrangements (whether involving the same or different parties).

(3) In paragraph (2) “the relevant date” means the later of—

(a)the date on which the promoter becomes aware of any transaction which forms part of the notifiable contribution arrangements; and

(b)the date on which the reference number is notified to the promoter.

(4) But where the conditions in paragraph (5) are met the duty imposed on the promoter under paragraph (2) to provide the client with information in relation to notifiable contribution arrangements is discharged.

(5) Those conditions are that—

(a)the promoter is also a promoter in relation to a notifiable contribution proposal and provides services to the client in connection with them both;

(b)the notifiable contribution proposal and the notifiable contribution arrangements are substantially the same; and

(c)the promoter has provided to the client, in a form and manner specified by HMRC, prescribed information relating to the reference number that has been notified to the promoter in relation to the proposed notifiable contribution arrangements.

(6) HMRC may give notice that, in relation to notifiable contribution arrangements specified in the notice, promoters are not under the duty under paragraph (2) after the date specified in the notice.

[^F29Duty to notify client of reference number: regulation 12(3) case

13A. —(1) This regulation applies where a person is providing (or has provided) services to another person (“ the client ”) in connection with arrangements or proposed arrangements.

(2) The person must, before the end of the period of 30 days beginning with the relevant date, provide the client with prescribed information relating to any reference number allocated in a case within regulation 12(3) or section 311(3) (or, if more than one, any one such reference number) that has been notified to the person (whether by HMRC or any other person) in relation to—

(a)the arrangements or proposed arrangements, or

(b)any arrangements substantially the same as the arrangements or the proposed arrangements (whether involving the same or different parties).

(3) In paragraph (2), “ the relevant date ” means the date on which the person has been notified of the reference number.

(4) HMRC may give notice that, in relation to arrangements or proposed arrangements specified in the notice, no person is under the duty imposed by paragraph (2) after the date specified in the notice.^F29]

Duty of client to notify parties of number_I13

14. —(1) This regulation applies where a person (the “client”) to whom a person who is a promoter in relation to notifiable contribution arrangements or a notifiable contribution proposal is providing (or has provided) services in connection with the notifiable contribution arrangements or notifiable contribution proposal receives prescribed information [^F30 under regulation 13 ^F30] relating to the reference number allocated to—

(a)the notifiable contribution arrangements,

(b)the notifiable contribution proposal, or

(c)[^F31 any arrangements^F31] substantially the same as the notifiable contribution proposal or notifiable contribution arrangements.

[^F32 (1A) This regulation also applies where a person (the “client”) to whom a person is providing (or has provided) services in connection with arrangements or proposed arrangements receives prescribed information under regulation 13A relating to the reference number allocated to—

(a)the arrangements,

(b)the proposed arrangements, or

(c)any arrangements substantially the same as the arrangements or proposed arrangements.^F32]

(2) The client must, within the prescribed period, provide the prescribed information relating to the reference number to any other person—

(a)who the client might reasonably be expected to know is or is likely to be a party to the arrangements or proposed arrangements, and

(b)who might reasonably be expected to gain an advantage by reason of the arrangements or proposed arrangements.

[^F33 (2A) Where the client—

(a)is an employer, and

(b)by reason of the [^F34 arrangements or proposed arrangements^F34] , receives or might reasonably be expected to receive an advantage, in relation to the employment of one or more of the client’s employees,^F33]

(3) HMRC may give notice that, in relation to [^F35arrangements or a proposal^F35] specified in the notice, persons are not under the duty under [^F36paragraph (2) or (2A)^F36] after the date specified in the notice.

[^F37 (3A) For the purposes of this regulation—

(a) “relevant employee” means an employee in relation to whose employment the client receives or might reasonably be expected to receive the advantage mentioned in paragraph (2A);

(b) “employee” includes former employee; and

(c) a reference to employment includes holding an office (and references to “employee” and “employer” are to be construed accordingly). ^F37]

(4) The duty under [^F38paragraph (2) or (2A)^F38] does not apply in the prescribed circumstances.

[^F39Duty of client to provide information ^F40...

14A. —(1) This regulation applies where a person (“ the client ”) has been provided with information under regulation 13(2) or regulation 13A(2) (prescribed information about reference number) . ^F41]

(2) The client must, within the prescribed period, provide the [^F42 person who provided the information^F42] with the prescribed information relating to the client.^F39]

[^F43Duty of parties to notify HMRC of reference number etc^F43] _I14

15.—(1) Any person who is a party to any [^F44arrangements to which a reference number has been allocated^F44] must, at the prescribed time or times, provide HMRC with the prescribed information relating to—

(a)^F45any reference number notified to him, ... and

(b)the time when he obtains or expects to obtain by virtue of the arrangements an advantage in relation to any contribution.

^F46(2) HMRC may give notice that, in relation to ... arrangements specified in the notice, persons are not under the duty under paragraph (1) after the date specified in the notice.

[^F47 (3) The duty under paragraph (1) does not apply in prescribed circumstances.^F47]

Duty to provide details of clients_I15

16. —(1) This regulation applies where a person who is a promoter in relation to notifiable contribution arrangements is providing (or has provided) services to any person (“the client”) in connection with the notifiable contribution arrangements and either—

[^F48 (a)the promoter is subject to the requirement under regulation 13(2) to provide to the client prescribed information relating to the reference number allocated to—

(i)the arrangements, or

(ii)any arrangements substantially the same as the arrangements, or

(b)the promoter has failed to comply with regulation 8(1) or (3) in relation to the notifiable contribution arrangements (or the notifiable contribution proposal for them) but would be subject to that requirement if a reference number had been allocated to—

(i)the notifiable contribution arrangements, or

(ii)any arrangements substantially the same as the notifiable contribution arrangements.^F48]

(b)the promoter has failed to comply with regulation 8(1) or (3) in relation to the notifiable contributions arrangements (or the notifiable contribution proposal for them) but would be subject to the reference number information requirement if a reference number had been allocated to the notifiable contribution arrangements.

[^F49 (1A) This regulation also applies where—

(a) a person (“ the provider ”) is providing (or has provided) services to another person (“ the client ”) in connection with arrangements or proposed arrangements, and

(b)the provider is subject to the requirement under regulation 13A(2) to provide to the client prescribed information relating to the reference number allocated to—

(i)the arrangements or proposed arrangements, or

(ii)any arrangements substantially the same as the arrangements or proposed arrangements.^F49]

^F50(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) The promoter[^F51 or (as the case may be) provider^F51] must, within the prescribed period after the end of the relevant period, provide HMRC with the prescribed information in relation to the client.

[^F52 (4) In paragraph (3) “ the relevant period ” means—

(a)in a case within paragraph (1), such period as is prescribed and is a period during which the promoter is or would be subject to the requirement mentioned in that paragraph;

(b)in a case within paragraph (1A), such period as is prescribed and is a period during which the provider is or would be subject to the requirement mentioned in that paragraph.^F52]

(5) The promoter need not comply with paragraph (3) in relation to any notifiable contribution arrangements at any time after HMRC have given notice under regulation 13(6) in relation to the arrangements.

[^F53 (6) The provider need not comply with paragraph (3) in relation to any arrangements at any time after HMRC have given notice under regulation 13A(4) in relation to the arrangements.^F53]

[^F54Enquiry following disclosure of client details

16A.—(1) This regulation applies where—

[^F55 (a) a person (“the service provider”) is providing or has provided services to another person (“ the client ”) in connection with arrangements or proposed arrangements,

(aa)the service provider has provided HMRC with information in relation to the client under regulation 16, and^F55]

(b) HMRC suspect that a person other than the client is or is likely to be a party to the arrangements.

(2) HMRC may by written notice require the [^F56 service provider^F56] to provide the prescribed information in relation to any person other than the client who the [^F56 service provider^F56] might reasonably be expected to know is or is likely to be a party to the arrangements.

(3) The [^F57 service provider^F57] must comply with a requirement under or by virtue of paragraph (2) within—

(a)the prescribed period; or

(b)such longer period as HMRC may direct.^F54]

[^F58Duty of employer to notify HMRC of details of employees etc

16B.—(1) This regulation applies if conditions A, B and C are met.

[^F59 (2) Condition A is that—

(a) a person who is a promoter in relation to notifiable contribution arrangements or a notifiable contribution proposal is providing (or has provided) services in connection with the arrangements or proposal to a person (“ the client ”); or

(b) a person is providing (or has provided) services in connection with arrangements or a proposal to a person (“ the client ”) ^F59]

(3) Condition B is that the client receives information under regulation 13(2) [^F60 or 13A(2)^F60] or as mentioned in regulation 13(5).

(4) Condition C is that the client is an employer in circumstances where, as a result of the ^F61... [^F62 arrangement^F62] or proposed ^F61... [^F62 arrangement^F62] —

(a)one or more of the client’s employees receive, or might reasonably be expected to receive, in relation to their employment, an advantage, or

(b)the client receives or might reasonably be expected to receive an advantage in relation to the employment of one or more of the client’s employees.

(5) Where an employee is within paragraph (4)(a), or is an employee mentioned in paragraph (4)(b), the client must provide HMRC with prescribed information relating to the employee at the prescribed time or times.

(6) The client need not comply with paragraph (5) in relation to any ^F63... arrangements at any time after HMRC has given notice under regulation 13(6) [^F64 , 13A(4)^F64] or 15(2) in relation to the ^F63... arrangements.

(7) The duty under paragraph (5) does not apply in prescribed circumstances.

(8) Regulation 14(3A) applies for the purposes of this regulation as it applies for the purpose of that regulation.^F58]

Pre-disclosure enquiry_I16

17. —(1) Where HMRC suspect that a person (“P”) is the promoter or introducer of a proposal or arrangements which may be a notifiable contribution proposal or notifiable contribution arrangements, HMRC may by written notice require P to state—

(a)whether in P’s opinion the proposal or arrangements are notifiable by P, and

(b)if not, the reasons for P’s opinion.

(2) A notice must specify the proposal or arrangements to which it relates.

(3) For the purpose of paragraph (1)(b)—

(a)it is not sufficient to refer to the fact that a lawyer or other professional has given an opinion,

(b)the reasons must show, by reference to this Part and the Descriptions Regulations why P thinks the proposal or arrangements are not notifiable by P, and

(c)in particular, if P asserts that the arrangements do not fall within any description prescribed by the Descriptions Regulations the reasons must provide sufficient information to enable HMRC to confirm the assertion.

(4) P must comply with a requirement under or by virtue of paragraph (1) within—

(a)the prescribed period, or

(b)such longer period as HMRC may direct.

Reasons for non-disclosure: supporting information_I17

18. —(1) Where HMRC receive from a person (“P”) a statement of reasons why a proposal or arrangements are not notifiable by P, HMRC may apply to the tribunal for an order requiring P to provide specified information or documents in support of the reasons.

(2) P must comply with a requirement under or by virtue of paragraph (1) within—

(a)the prescribed period, or

(b)such longer period as HMRC may direct.

(3) The power under paragraph (1)—

(a)may be exercised more than once, and

(b)applies whether or not the statement of reasons was received under regulation 17(1)(b).

[^F65Provision of information to HMRC by introducers^F65] _I18

19.[^F66—(1) This regulation applies where HMRC suspect—

(a) that a person (“P”) is an introducer in relation to a proposal; and

(b)that the proposal may be a notifiable contribution proposal.^F66]

[^F67 (1A) HMRC may by written notice require P to provide HMRC with one or both of the following—

(a)prescribed information in relation to each person who has provided P with any information relating to the proposal;

(b)prescribed information in relation to each person with whom P has made a marketing contact in relation to the proposal.^F67]

(2) A notice must specify the proposal to which it relates.

(3) P must comply with a requirement under [^F68paragraph (1A)^F68] within—

(a)the prescribed period; or

(b)such longer period as HMRC may direct.

Order to disclose_I19

20.—(1) HMRC may apply to the tribunal for an order that—

(a)a proposal is a notifiable contribution proposal, or

(b)arrangements are notifiable contribution arrangements.

(2) An application must specify—

(a)the proposal or arrangements in respect of which the order is sought, and

(b)the promoter.

(3) On an application the tribunal may make the order only if satisfied that section 132A(3) of the Social Security Administration Act 1992 applies to the relevant arrangements and that they are within a description prescribed by the Descriptions Regulations.

Information to be provided in form and manner specified by HMRC_I20

21.—(1) HMRC may specify the form and manner in which information required to be provided by any of the information provisions must be provided if the provision is to be complied with.

(2) The “information provisions” are regulations 8(1) and (3), 10(1), 11, [^F69 11A, ^F69][^F70 11C, ^F70][^F71 12C, ^F71] 13(2), [^F72 13A(2), ^F72] 14(2), 15(1) [^F73 , 16(3) and 16B(5) ^F73] and the Information Regulations.

[^F74Duty to provide additional information

21A.—(1) This regulation applies where a person is required to provide information under regulation 13(2) [^F75 , 13A(2)^F75] or 14(2) or (2A).

(2) HMRC may specify additional information which must be provided by that person to the recipients under regulation 13(2) [^F76 , 13A(2)^F76] or 14(2) or (2A) at the same time as the information referred to in paragraph (1).

(3) HMRC may specify the form and manner in which the additional information is to be provided.

(4) For the purposes of this regulation “additional information” means information supplied by HMRC which relates to notifiable contribution proposals or notifiable contribution arrangements in general.

Confidentiality

21B. No duty of confidentiality or other restriction on disclosure (however imposed) prevents the voluntary disclosure by any person to HMRC of information or documents which the person has reasonable grounds for suspecting will assist HMRC in determining whether there has been a breach of any requirement imposed by or under these Regulations.

Publication by HMRC

21C.—(1) HMRC may publish information about—

(a)any arrangements, or proposed arrangements, to which a reference number is allocated under regulation 12;

(b)where the reference number is allocated in a case within regulation 12(2), any person who is a promoter in relation to the arrangements or, in the case of proposed arrangements, the proposal;

(c)where the reference number is allocated in a case within regulation 12(3), any person who is or has been—

(i)a promoter in relation to the arrangements or proposed arrangements, or

(ii)otherwise involved in the supply of the arrangements or proposed arrangements.^F77]

(2) The information that may be published is (subject to paragraph (4))—

(a)any information relating to arrangements within paragraph (1)(a), or a person within paragraph (1)(b) [^F78 or (c)^F78] , that is prescribed information for the purposes of [^F79 any provision of this Part^F79] ;

[^F80 (b)any ruling of a court or tribunal relating to—

(i)arrangements within paragraph (1)(a);

(ii)a person within paragraph (1)(b), in that person’s capacity as a promoter;

(iii)a person within paragraph (1)(c), in that person’s capacity as a promoter or a person otherwise involved in the supply of arrangements or proposed arrangements;^F80]

(c)the number of persons in any period who enter into transactions forming part of ^F81... arrangements within paragraph (1)(a);

(d)whether ^F82... arrangements within paragraph (1)(a) are APN relevant;

(e)any other information that HMRC considers it appropriate to publish for the purpose of identifying arrangements within paragraph (1)(a) or a person within paragraph (1)(b) [^F83 or (c)^F83] .

(3) The information may be published in any manner that HMRC considers appropriate.

(4) No information may be published under this regulation that identifies a person who enters into a transaction forming part of ^F84... arrangements within paragraph (1)(a).

[^F85 (4A) No information may be published under this regulation in respect of a person involved in the supply of arrangements or proposed arrangements where there are reasonable grounds for believing that the person’s involvement is limited to activities subject to legal professional privilege.^F85]

(5) But where a person [^F86 within paragraph (1)(b) or (c)^F86] is also a person mentioned in paragraph (4), nothing in paragraph (4) is to be taken as preventing the publication under this regulation of information so far as relating to the person’s activities as a promoter [^F87 or a person involved in the supply of arrangements or proposed arrangements.^F87] .

(6) Before publishing any information under this regulation that identifies a person as [^F88 a person within paragraph (1)(b) or (c)^F88] , HMRC must—

(a)inform the person that they are considering doing so, and

(b)give the person reasonable opportunity to make representations about whether it should be published.

[^F89 (6A) Where a reference number is allocated in a case within regulation 12(3)—

(a)information that identifies a person within paragraph (1)(c) may not be published for the first time after the end of the period of one year beginning with the day on which the reference number is allocated;

(b)no information that identifies a person within paragraph (1)(c) may be published (or continue to be published) after the end of the period of one year beginning with the day on which it is first published.

(6B) In determining a period of one year for the purposes of paragraph (6A)(a) or (b), no account is to be taken of any period during which HMRC are prohibited from publishing the information because of proceedings before a court or tribunal.^F89]

(7) Arrangements are “APN relevant” for the purposes of paragraph (2)(d) if HMRC has indicated in a publication that it may exercise (or has exercised) its power under section 219 of the Finance Act 2014 (accelerated payment notices) by virtue of the arrangements being DOTAS arrangements within the meaning of that section.

Subsequent judicial rulings

21D.—(1) This regulation applies if—

(a)information about ^F90... arrangements, or proposed ^F90... arrangements, is published under regulation 21C,

(b)at any time after the information is published, a ruling of a court or tribunal is made in relation to [^F91 arrangements^F91] , and

(c) HMRC is of the opinion that the ruling is relevant to the arrangements mentioned in sub-paragraph (a).

(2) A ruling is “relevant” to the arrangements if—

(a)the principles laid down, or reasoning given, in the ruling would, if applied to the arrangements, allow the purported advantage arising from the arrangements in relation to contributions, and

(b)the ruling is final.

(3) HMRC must publish information about the ruling.

(4) The information must be published in the same manner as HMRC published the information mentioned in sub-paragraph (1)(a) (and may also be published in any other manner that HMRC considers appropriate).

(5) A ruling is “final” if it is—

(a)a ruling of the Supreme Court, or

(b)a ruling of any other court or tribunal in circumstances where—

(i)no appeal may be made against the ruling,

(ii)if an appeal may be made against the ruling with permission, the time limit for applications has expired and either no application has been made or permission has been refused,

(iii)if such permission to appeal against the ruling has been granted or is not required, no appeal has been made within the time limit for appeals, or

(iv)if an appeal was made, it was abandoned or otherwise disposed of before it was determined by the court or tribunal to which it was addressed.

(6) Where a ruling is final by virtue of paragraph (5)(b)(ii), (iii) or (iv), the ruling is to be treated as made at the time when the paragraph in question is first satisfied.

^F92(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .^F74]

PART 3 Provisions corresponding to section 98C and section 118(2) of the Taxes Management Act 1970 and modifications of related provisions

Notification under Part 2_I21

22.—(1) A person who fails to comply with any of the provisions of Part 2 mentioned in paragraph (2) below shall be liable—

(a)to a penalty not exceeding—

(i)in the case of a provision mentioned in sub-paragraph (a), (b) [^F93, (c) [^F94 , (ca) or (cc)^F94,F93]] of that paragraph, £600 for each day during the initial period (but see also paragraphs (5), (7) and (8) below); and

(ii)in any other case, £5,000; and

(b)if the failure continues after a penalty is imposed under sub-paragraph (a) above, to a further penalty or penalties not exceeding £600 for each day on which the failure continues after the day on which the penalty under sub-paragraph (a) was imposed (but excluding any day for which a penalty under this paragraph has already been imposed).

This is subject to paragraph (14).

(2) Those provisions are—

(a)regulation 8(1) and (3) (duty of promoter in relation to notifiable contribution proposals and notifiable contribution arrangements),

(b)regulation 10(1) (duty of person dealing with promoter outside United Kingdom),

(c)regulation 11 (duty of parties to notifiable contribution arrangements not involving promoter),

[^F95 (ca)regulation 11A (duty to provide further information requested by HMRC),^F95]

[^F96 (cb)regulation 11C (duty of promoters to provide updated information)^F96]

[^F97 (cc)regulation 12C (duty to provide further information requested by HMRC: regulation 12(3) case),^F97]

(d)regulation 13(2) (duty of promoter to notify client of reference number[^F98 : regulation 12(2) case^F98] ),

[^F99 (da)regulation 13A(2) (duty to notify client of reference number: regulation 12(3) case),^F99]

(e)regulation 14(2) [^F100and 14(2A)^F100] (duty of client to notify parties of reference number),

[^F101 (ea)regulation 14A(2) (duty of client to provide information ^F102...),^F101]

(f)^F103regulation 16 (duty ... to provide details of clients),

[^F104 (fa)regulation 16A [^F105 (enquiry following disclosure of client details)^F105] ,^F104]

[^F106 (fb)regulation 16B (duty of employer to notify HMRC of details of employees etc)^F106]

(g)^F107regulations 17 and 18 (duty of promoter to respond to inquiry), ...

[^F108 (h)regulation 19 (provision of information to HMRC by introducers), and^F108]

[^F109 (i)regulation 21A (duty to provide additional information).^F109]

(3) In this regulation “the initial period” means the period—

(a)beginning with the relevant day; and

(b)[^F110 subject to paragraph 3B,^F110] ending with the earlier of the day on which the penalty under paragraph (1)(a)(i) is determined and the last day before the failure ceases;

and for this purpose “the relevant day” is the day specified in relation to the failure in the following table.

[^F113 (3A) Paragraph 3B applies where—

(a)a person fails to comply with a provision mentioned in paragraph (2)(a), (b) or (c) in respect of arrangements or proposed arrangements, and

(b)a reference number is subsequently allocated to the arrangements or proposed arrangements in a case within regulation 12(3) (allocation of reference number to arrangements: paragraph (3) case).

(3B) Where this paragraph applies, the failure to comply is taken for the purposes of this regulation to have ceased on the day before the reference number is allocated, if it has not already ceased.^F113]

(4) The amount of a penalty under paragraph (1)(a)(i) is to be arrived at after taking account of all relevant considerations, including the desirability of its being set at a level which appears appropriate for deterring the person, or other persons, from similar failures to comply on future occasions having regard (in particular)-

(a)in the case of a penalty for a [^F114promoter’s^F114] failure to comply with regulation 8(1) or (3) [^F115or regulation 11A^F115] , to the amount of any fees received, or likely to have been received, by the [^F116promoter^F116] in connection with the notifiable contribution proposal (or arrangements implementing the notifiable contribution proposal), or with the notifiable contribution arrangements;

[^F117 (aa)in the case of a penalty for a person’s failure to comply with regulation 12C, to the amount of any fees received, or likely to have been received by the person in connection with the arrangements, the proposed arrangements or the proposal;^F117]

(b)in the case of a penalty for the [^F118relevant^F118] person’s failure to comply with regulation 10(1) [^F119, 11 or 11A^F119] , to the amount of any advantage gained, or sought to be gained, by the [^F120relevant^F120] person in relation to any contribution.

[^F121 (4A) In paragraph 4—

(a) “promoter” has the same meaning as in regulation 7, and

(b) “relevant person” means a person who enters into any transaction forming part of notifiable contribution arrangements within the meaning of regulation 5. ^F121]

(5) If the maximum penalty under paragraph (1)(a)(i) above appears inappropriately low after taking account of those considerations, the penalty is to be of such amount not exceeding £1 million as appears appropriate having regard to those considerations.

(6) Where it appears to an officer of Revenue and Customs that a penalty under paragraph (1)(a)(i) above has been determined on the basis that the initial period begins with a day later than that which the officer considers to be the relevant day, an officer of Revenue and Customs may commence proceedings for a re-determination of the penalty.

(7) Where a failure to comply with a provision mentioned in paragraph (2) concerns a proposal or arrangements in respect of which an order has been made under regulation 6 (doubt as to notifiability), the amounts specified in paragraph (1)(a)(i) and (b) shall be increased to the sum prescribed by the Tax Avoidance Schemes (Penalty) Regulations 2007(10) (as modified by these Regulations).

(8) Where a failure to comply with a provision mentioned in paragraph (2) concerns a proposal or arrangements in respect of which an order has been made under regulation 20 (order to disclose), the amounts specified in paragraph (1)(a)(i) and (b) shall be increased to the sum prescribed by the Tax Avoidance Schemes (Penalty) Regulations 2007 (as modified by these Regulations) in relation to the days falling after the prescribed period.

(9) The making of an order under regulation 6 or 20 does not of itself mean that, for the purposes of regulation 23, a person either did or did not have a reasonable excuse for non-compliance before the order was made.

(10) Where an order is made under regulation 6 or 20 then for the purposes of regulation 23—

(a)the person identified in the order as the promoter of the proposal or arrangements cannot, in respect of any time after the end of the period mentioned in paragraph (8), rely on doubt as to notifiability as an excuse for failure to comply with regulation 8, and

(b)any delay in compliance with that regulation after the end of that period is unreasonable unless attributable to something other than doubt as to notifiability.

[^F122 (10A) Where a person fails to comply with—

(a)regulation 10 and the promoter for the purposes of that regulation is a monitored promoter for the purposes of Part 5 of the Finance Act 2014, or

(b)regulation 11 and the notifiable contribution arrangements for the purposes of that regulation are arrangements of such a monitored promoter,

then for the purposes of regulation 23 (interpretation) legal advice which the person took into account is to be disregarded in determining whether the person had a reasonable excuse, if the advice was given or procured by that monitored promoter.

(10B) In determining for the purpose of regulation 23 whether or not a person who is a monitored promoter within the meaning of Part 5 of the Finance Act 2014 had a reasonable excuse for a failure to do anything required to be done under a provision mentioned in paragraph (2), reliance on legal advice is to be taken automatically not to constitute a reasonable excuse if either—

(a)the advice was not based on a full and accurate description of the facts, or

(b)the conclusions in the advice that the person relied on were unreasonable.^F122]

(11) A person who fails to comply with regulation 15(1) [^F123(duty of parties to notify HMRC of reference number etc)^F123] or regulation 10 of the Information Regulations shall be liable to a [^F124penalty not exceeding the relevant sum^F124] .

This is subject to paragraph (14).

(12) In paragraph (11) “the relevant sum” means—

(a)in relation to a person not falling within sub-paragraph (b) or (c) below, [^F125£5,000^F125] in respect of each scheme to which the failure relates,

(b)in relation to a person who has previously failed to comply with regulation 15(1) or regulation 10 of the Information Regulations on one (and only one) occasion during the period of 36 months ending with the date on which the current failure to comply with that provision began, [^F126£7,500^F126] in respect of each scheme to which the current failure relates (whether or not the same as the scheme to which the previous failure relates), or

(c)in relation to a person who has previously failed to comply with regulation 15(1) or regulation 10 of the Information Regulations on two or more occasions during the period of 36 months ending with the date on which the current failure to comply with that provision began, [^F127£10,000^F127] in respect of each scheme to which the current failure relates (whether or not the same as the schemes to which any of the previous failures relates).

(13) In paragraph (12) above “scheme” means any notifiable contribution arrangements which fall within any description prescribed by the Descriptions Regulations.

(14) Where the notifiable contribution arrangements or proposed notifiable contribution arrangements are, or are substantially the same as, [^F128arrangements or a proposal within Part 7^F128] in relation to which a penalty has been imposed under section 98C of the Taxes Management Act 1970 in respect of a failure to comply with the provisions of Part 7, this regulation shall not apply to impose a penalty in respect of the failure to comply with the corresponding provision of these Regulations.

Interpretation_I22

23. For the purposes of this Part—

(a)a person shall be deemed not to have failed to do anything required to be done within a limited time if it was done within such further time, if any, as HMRC may have allowed; and

(b)where a person had a reasonable excuse for not doing anything required to be done—

(i)that person shall be deemed not to have failed to do it unless the excuse ceased; and

(ii)after the excuse ceased, that person shall be deemed not to have failed to do it if it was done without unreasonable delay after the excuse had ceased.

Modification of Part 10 of the Taxes Management Act 1970 _I23

24.—(1) Part 10 of the Taxes Management Act 1970(11) so far as it relates to a penalty under section 98C of that Act shall apply in relation to a penalty under regulation 22 with the following modifications.

(2) In section 100 (determination of penalties by officer of Board) for subsection (2)(f) (penalties to which subsection (1) of the section does not apply) substitute—

“(f)regulation 22(1)(a) of the National Insurance Contributions (Application of Part 7 of the Finance Act 2004) Regulations 2012.”.

PART 4 Modification of Regulations under Part 7

Modification of the Descriptions Regulations_I24

25.—(1) The Descriptions Regulations apply to notifiable contribution arrangements and notifiable contribution proposals with the following modifications and any reference in those Regulations to sections 306 to 313C and section 314A shall be construed as a reference to the corresponding provision of these Regulations (see regulation 5(2)).

(2) In regulation 1 (citation, commencement and effect) omit paragraphs (2) and (3).

(3) In regulation 5 (prescribed descriptions of arrangements)—

(a) in paragraph (1) for “income tax, corporation tax and capital gains tax” substitute “national insurance contributions”, and

(b)in paragraph (2) omit [^F129sub-paragraphs (f) to (g)^F129] .

(4) In Part 3—

(a) for “tax advantage” wherever it occurs substitute “advantage within the meaning given by section 132A(7) of the Social Security Administration Act 1992 ”; and

(b) for “a tax advantage” wherever it occurs substitute “an advantage within the meaning given by section 132A(7) of the Social Security Administration Act 1992 ”.

(5) In regulation 10 (Description 5: standardised tax products) , in the heading and paragraphs (1) and (3) for “tax product” substitute “national insurance contributions product”.

(6) Omit [^F130regulations 12 to 17^F130] .

The Information Regulations_I25

26.—(1) The Information Regulations apply to [^F131arrangements^F131] and [^F132proposed arrangements within Part 2^F132] with the following modifications and—

(a)any reference in those Regulations to sections 306 to 313C and section 314A shall be construed as a reference to the corresponding provision of these Regulations (see regulation 5(2)); and

(b)any reference in those Regulations to section 98C of the Taxes Management Act 1970 shall be construed as a reference to regulation 22 of these Regulations.

(2) In regulation 2 (interpretation)—

(a) insert the following definition immediately before the definition of “employment”—

““contributions” means national insurance contributions;”;

[^F133 (aa) in sub-paragraph (a) of the definition of “the filing date” omit “or in the case of inheritance tax the last day of the period mentioned in regulation 9(5)(b) ^F133]

(b) after the definition of “filing date” insert—

““notifiable contribution arrangements” has the meaning given by section 132A(3) of the Social Security Administration Act 1992;

“notifiable contribution proposal” has the meaning given by section 132A(3) of the Social Security Administration Act 1992;”;

(c) omit the definition of “the prescribed taxes”.

(3) In regulation 4 (prescribed information in respect of notifiable proposals and arrangements)—

(a)wherever the words appear—

(i) for “any of the prescribed taxes” substitute “the contributions”;

(ii) for “notifiable arrangements” substitute “notifiable contribution arrangements”;

(iii) for “notifiable proposal” substitute “notifiable contribution proposal”; and

(iv) for “tax advantage” substitute “advantage”;

(b) in paragraphs (1)(b), (2)(c) and (3)(b) omit “ [^F134 , the ATED Arrangements Regulations, the IHT Arrangements Regulations or the SDLT Arrangements Regulations ^F134] ”; and

(c) in paragraph (5) omit the definitions of [^F135 “the ATED Arrangements Regulations”, ^F135] “the IHT Arrangements Regulations” and “the SDLT Arrangements Regulations”.

(4) In regulation 5 (time for providing information under section 308, 308A, 309 or 310)—

^F136(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) in paragraph (3) for “notifiable proposal or arrangements” substitute “notifiable contribution proposal or notifiable contribution arrangements”; and

(c) in paragraphs (6), (7) and (8) for “notifiable arrangements” substitute “notifiable contribution arrangements”.

^F137(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

^F138(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

^F139(6A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7) Omit regulation 9.

(8) For regulation 10 (prescribed cases under section 313(3)(b)) substitute—

Prescribed information under regulation 15 of the National Insurance Contributions (Application of Part 7 of the Finance Act 2004) Regulations 2012: timing and manner of delivery

10.—(1) For the purposes of regulation 15 of the National Insurance Contributions (Application of Part 7 of the Finance Act 2004) Regulations 2012 [^F140(duty of parties to notify HMRC of the reference number etc)^F140] the prescribed information is—

(a)the reference number allocated by HMRC under regulation 12 [^F141or section 311^F141] to the ^F142... arrangements or ^F142... proposal;

(b)the earnings period in which the person making the notification expects an advantage to be obtained; and

(c)the employer’s name, address and Unique Taxpayer Reference (UTR).

(2) The prescribed information shall be provided by the employer to HMRC in such form and manner as they may specify.

[^F143(3) Unless paragraph (4) applies, the prescribed time at which a person who is a party to ^F144... arrangements must provide HMRC with information under regulation 15 is 14 days after the end of the final tax period of the tax year in respect of which any person first enters into a transaction forming part of the ^F144... arrangements and in respect of each subsequent year until an advantage ceases to apply to any person.

In this paragraph, “tax period” has the meaning given in paragraph 1(2) of Schedule 4 to the Social Security (Contribution) Regulations 2001 (interpretation).^F143]

(4) Where the advantage which is expected to arise from the ^F145... arrangements relates to Class 1A contributions only, and the transactions which comprise the ^F145... arrangements do not give rise to an advantage in relation to tax, the prescribed time is any time before the date on which the return under regulation 80(1) of the Social Security (Contributions) Regulations 2001 (return by employer) is or would be due—

(a)for the year in which the employer first enters into a transaction forming part of the ^F145... arrangements; and

(b)for each subsequent year until the advantage ceases to apply to any person.

In this paragraph the term “an advantage in relation to tax” shall be construed in accordance with section 318(1).”.

(9) Omit regulations 11 and 12.

[^F146 (9A) In regulation 13(1)(ba) (prescribed information under section 313ZA: information and timing) for “section 311” substitute “ section 311 or regulation 12 of the National Insurance Contributions (Application of Part 7 of the Finance Act 2004 ) Regulations 2012 (allocation of reference number to arrangements). ^F146]

^F147(10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[^F148 (10A) In regulation 13A(1)(b)(i) (prescribed information under section 313ZB: information and timing) for “a tax advantage” substitute “an advantage”. ^F148]

[^F149 (10B) In regulation 13B (prescribed information under section 313ZC: information and timing)—

(a) in paragraph (2)(d) for “a tax advantage” substitute “an advantage”;

(b) in paragraph (2)(e) for “a tax advantage” substitute “an advantage”; ^F149]

^F150(11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(12) In regulation 17 (electronic delivery of information)—

(a)in paragraph (2)—

(i)for sub-paragraph (a) substitute—

“(a)it is authorised by virtue of Part 7A of the Social Security (Contributions) Regulations 2001 (electronic communications); and”;

(ii) in paragraph (b) for “section” substitute “Part”.

(b) in paragraph (3)(a) for “regulations under section 132 of the Finance Act 1999 ” substitute “ Part 7A of the Social Security (Contributions) Regulations 2001 (electronic communications) ”.

(13) Omit regulation 18.

The Tax Avoidance Schemes (Promoters and Prescribed Circumstances) Regulations 2004_I26

27.—(1) The Tax Avoidance Schemes (Promoters and Prescribed Circumstances) Regulations 2004 apply to notifiable contribution arrangements and notifiable contribution proposals as they apply to income tax with the following modifications and any reference in those Regulations to sections 306 to 313C and section 314A shall be construed as a reference to the corresponding provision of these Regulations (see regulation 5(2)).

(2) In regulation 1 (citation, commencement and interpretation) for paragraph (2) substitute—

“(2) In these Regulations—

“notifiable contribution arrangements” and “notifiable contribution proposal” have the meanings given by section 132A(3) of the Social Security Administration Act 1992.”.

(3) In regulation 4 (persons not to be treated as promoters under section 307(1)(a)(i) or (b)(i))—

(a) for “tax advice” wherever it occurs substitute “advice about national insurance contributions”; and

(b) for “tax advantage” wherever it occurs substitute “advantage”.

(4) In regulation 6 (legal professional privilege) for “section 314” substitute “ section 132A(6) of the Social Security Administration Act 1992 ”.

The Tax Avoidance Schemes (Penalty) Regulations 2007_I27

28. The Tax Avoidance Schemes (Penalty) Regulations 2007 apply to notifiable contribution arrangements and notifiable contribution proposals as they apply to income tax and—

(a)any reference in those Regulations to sections 306 to 313C and section 314A shall be construed as a reference to the corresponding provision of these Regulations (see regulation 5(2)); and

(b)any reference in those Regulations to section 98C of the Taxes Management Act 1970 shall be construed as a reference to regulation 22 of these Regulations.

PART 5 Revocations _I28

29. The following instruments are revoked.

(a) the National Insurance Contributions (Application of Part 7 of the Finance Act 2004) Regulations 2007(12);

(b) the National Insurance Contributions (Application of Part 7 of the Finance Act 2004) (Amendment) Regulations 2008(13);

(c) the National Insurance Contributions (Application of Part 7 of the Finance Act 2004) (Amendment) Regulations 2009(14);

(d) the National Insurance Contributions (Application of Part 7 of the Finance Act 2004) (Amendment) (No. 2) Regulations 2009(15); and

(e) the National Insurance Contributions (Application of Part 7 of the Finance Act 2004) (Amendment) Regulations 2010(16).