HMRC has the power to stop persons promoting certain arrangements that may give rise to a tax advantage. HMRC can also require such persons to maintain certain conduct and monitor them if they fail to do so. This is known as the promoters of tax avoidance scheme (POTAS) regime. For an overview of the regime, see A7.301. For the key definitions, see A7.301A.
This article considers the penalties charged for failure to comply with the various obligations under the regime.
Penalties—general points
Penalties can be charged under the POTAS regime for:
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•ÌýÌýÌýÌý failure to comply with an obligation (both civil and criminal penalties)
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•ÌýÌýÌýÌý providing inaccurate information and documents, and
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•ÌýÌýÌýÌý concealing or destroying documents (both civil and criminal penalties)
These penalties are discussed in detail below. See also 'Additional penalty' and 'Disqualification orders' at the end of this article.
Criminal penalties are applied in priority to civil penalties1. This means that if the conditions for the criminal penalties are met, these are applied instead of the civil penalties.
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Web page updated on 17 Mar 2025 16:53