24 July 2025
HM Revenue and Customs (HMRC) has published the draft legislation for how they plan to tackle promoters of marketed tax avoidance.
The legislation covers a number of areas and is rather complex, if you are not actively engaging in tax avoidance then you shouldn’t need to worry, however, here is an overview of the proposed changes to current measures.
“DOTAS
Proposed changes include amendments to introduce a strict liability criminal offence of failing to notify arrangements to HMRC and changes to the penalty provisions to allow HMRC to issue penalties directly.
DASVOIT
Proposed changes include amendments to introduce a strict liability criminal offence of failing to notify arrangements to HMRC and changes to the penalty provisions to allow HMRC to issue penalties directly.
Universal stop notices
Proposed changes include: new legislation setting out how USNs will work and a new power to make regulations to prohibit promotion of described schemes, new financial penalties, publication powers, which will mirror section 86 of FA 2022 and a new criminal offence.
Promoter action notices
Proposed changes include:
- how PANs will work
- a new publishing power
- new information sharing provisions
- new penalties
- a new power to report failures to appropriate representative bodies or regulators
A suspected breach of a USN or failure to comply with a stop notice would enable HMRC to issue a PAN.
Connected parties information notice
The new CPIN aims to ensure HMRC can:
- obtain information that would help it understand the operation of avoidance schemes at an early stage
- deploy, monitor and enforce compliance with existing and proposed anti-avoidance powers addressing promotion activities
- identify persons behind promoter group structures and take action against them
Promoter financial institution notice
The new PFIN will allow HMRC to obtain information and documents from financial institutions for the purposes of checking the activities of a promoter and connected parties related to the promotion of an avoidance scheme or schemes. The legislation will largely reflect the current FIN powers in schedule 36 to FAA 2008, with some modifications reflecting the purpose of allowing enquiry into promoter activities.
Legal professionals
Proposed changes include amendments to the various publishing sections in legislation, contained at:
- section 86 of FA 2022
- section of 316C FA 2004
- paragraph 36 of schedule 17 to F(No.2)A 2017.
This will be to effectively repeal current sections that restrict publication of the details of legal professionals. The legislation will also set out appropriate safeguards.”
In recent months, HMRC has published many companies onto the Current list of named tax avoidance schemes, promoters, enablers and suppliers. These measures are designed to tackle repeating offenders and phoenix companies by imposing restrictions on certain activities rather than an individual company or director.
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