Tax avoidance schemes subject to a stop notice

14 April 2023

HM Revenue and Customs (HMRC) has published a list of tax avoidance schemes that are subject to a stop notice.

Stop notices are one of the ways in which HMRC tackle tax avoidance and those responsible for promoting it. The main aim of issuing stop notices is to reduce the number of tax avoidance schemes that are being marketed. HMRC believes this makes it harder for people to get caught up in them. If a promoter fails to comply with a stop notice they can face penalties of up to £100,000 which can increase to up to £1 million in certain circumstances.

Under the Promoters of Tax Avoidance Schemes (POTAS) regime, HMRC can publish information about promoters of tax avoidance schemes that are subject to a stop notice, and details of the scheme specified in the notice. The POTAS rules apply to promoters of tax avoidance schemes. These rules aim to discourage the development and marketing of avoidance schemes.

HMRC can also publish details of the arrangements included in the stop notice once the notice has been sent. However, the promoter or other persons subject to a stop notice can appeal, and HMRC cannot publish the name of the promoter or other persons subject to a stop notice before the appeal period has ended.