Citation, commencement and effect

1. —(1) These Regulations may be cited as the Promoters of Tax Avoidance Schemes (Prescribed Circumstances under Section 235) Regulations 2015 and come into force on 2nd March 2015.

(2) Regulations 2 and 3 have effect from 17th July 2014.

Company in same group not promoter

2. —(1) A company (“C”) is not a promoter to the extent that—

(a) C carries on a business within the meaning of section 235(1);

(b) the other person (or each of the other persons) to whom C provides services in connection with the relevant proposal or relevant arrangements is a company in the same group as C( 2 ); and

(c) C has not during the previous three years provided services of that kind to a person other than a company which is in the same group as C.

(2) If C at any subsequent time provides services of that kind to a person other than a company which is in the same group as C, paragraph (1) will be deemed not to have applied during the previous three years.

(3) A company cannot rely on paragraph (1) whilst a conduct notice or a monitoring notice has effect in relation to it( 3 ).

(4) For the purposes of this regulation companies are members of the same group if one is the 51% subsidiary of the other, or both are 51% subsidiaries of a third company.

(5) In this regulation “51% subsidiary” has the same meaning as it does for the purposes of the Corporation Tax Acts( 4 ).

Persons not promoters – special cases

3. —(1) A person (“P”) is not a promoter on account of section 235(2)(a), or by virtue of being responsible to any extent for the design of arrangements within the meaning of section 235(3)(b), where any of the following conditions are met.

(2) P does not provide any tax advice in connection with the respective proposed arrangements or arrangements.

(3) P could not reasonably be expected to know that the proposed arrangements, or arrangements, are a relevant proposal or relevant arrangements respectively.