Interest provisions extended to DOTAS, POTAS and enabler penalties

HM Treasury has laid two orders bringing the FA 2009 provisions on late payment interest and repayment interest into effect in relation to penalties under several tax avoidance penalty regimes with effect from 1 June.

The Finance Act 2009, Sections 101 and 102 (Disclosure of Tax Avoidance Schemes: Penalties) (Appointed Day and Consequential Provisions) Order, SI 2019/918, applies late payment and repayment interest to penalties under:

• TMA 1970 s 98C for the disclosure of tax avoidance schemes (DOTAS) regime covering direct taxes, NICs and apprenticeship levy; and
• the DOTAS regime for NICs in reg 22 of the NICs (Application of Part 7 of the Finance Act 2004) Regulations, SI 2012/1868.

The Finance Act 2009, Sections 101 and 102 (Avoidance: Penalties) (Appointed Day) Order, SI 2019/921, applies late payment and repayment interest to penalties under:

• the DOTAS regime in relation to VAT and other indirect taxes in Finance (No 2) Act 2017 Sch 17;
• the promoters of tax avoidance schemes (POTAS) regime in Finance Act 2014 Sch 35; and
• the enablers of defeated tax avoidance schemes regime in Finance (No 2) Act 2017 Sch 16.