Citation, commencement and effect

1. —(1) These Regulations may be cited as the National Insurance Contributions (Application of Part 7 of the Finance Act 2004) (Amendment) Regulations 2015 and come into force on 12th April 2015.

(2) These Regulations have effect in relation to prescribed information about notifiable contribution proposals or notifiable contribution arrangements( 2 ) provided by a person in compliance, or purported compliance, with regulations 8, 10 and 11 of the National Insurance Contributions (Application of Part 7 of the Finance Act 2004) Regulations 2012( 3 ) on or after 12th April 2015.

(3) For the purposes of this regulation “prescribed” has the meaning given by regulation 2 of the National Insurance Contributions (Application of Part 7 of the Finance Act 2004) Regulations 2012.

Amendment of the National Insurance Contributions (Application of Part 7 of the Finance Act 2004) Regulations 2012

2. The National Insurance Contributions (Application of Part 7 of the Finance Act 2004) Regulations 2012 are amended as follows.

3. In regulation 2 (interpretation), at the end, insert—

“ “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 ( 4 ) in any part of the United Kingdom. ” .

4. In the Table at regulation 5(2) (provisions corresponding to Part 7 of the Finance Act 2004( 5 )), after the row relating to section 310 (duty of parties to notifiable arrangements not involving promoter) insert—

5. After regulation 11 (duty of parties to notifiable contribution arrangements not involving promoter) insert—

“ Duty 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. ” .

6. In regulation 21(2) (information to be provided in form and manner specified by HMRC) after “11,” insert “11A,”.

7. In regulation 22 (notification under Part 2)—

(a) in paragraph (1)(a)(i), for “or (c)” substitute “, (c) or (ca)”;

(b) in paragraph (2), after sub-paragraph (c) insert—

“ (ca) regulation 11A (duty to provide further information requested by HMRC), ” ;

(c) in paragraph (3), at the end of the table insert—

(d) in paragraph (4)(a)—

(i) for “person’s” substitute “promoter’s”;

(ii) after “(3)” insert “or regulation 11A”;

(iii) for “person” substitute “promoter”;

(e) in paragraph (4)(b)—

(i) before “person’s” insert “relevant”;

(ii) for “or 11” substitute “, 11 or 11A”;

(iii) before “person” insert “relevant”;

(f) after paragraph 4, insert—

“ (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. ” ;

(g) after paragraph 10, insert—

“ (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 ( 7 ) , 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. ” .