Measures to ensure those marketing tax avoidance schemes cannot circumvent the Promoters of Tax Avoidance Schemes (POTAS) regime by re-organising their businesses have been introduced by the Chancellor
Effective from 8 March 2018, the move prevents promoters rearranging their business structures so they either share control of a promoting business or put a person or people between themselves and the promoting business. It forms part of a set of anti-avoidance measures which Philip Hammond claims will recover an extra £820m for the exchequer.
Changes to the POTAS legislation were introduced in the Finance Act 2015 to ensure promoters cannot use associated and successor entities to circumvent the legislation.
However, the government does not expect the measure to have any Exchequer impact. However, in POTAS’s original costing in Budget 2013, it was thought it would generate £35m per year from 2015/16 onwards.
The Promoters of Tax Avoidance Schemes: associated and successor entities rules can be viewed here.