The guidance on time limits for HMRC to issue a notice of assessment for an enabler penalty has been updated to cover the rules that apply where a proposal for arrangements is implemented more than once by a number of arrangements that are substantially the same as each other (‘related arrangements’). Each use of the arrangements will be counted separately for the purpose of the time limits.
HMRC will not give notice of penalty assessment to any enabler of arrangements until the ‘required’ amount of related arrangements is known. This is a change from the previous requirement for more than 50% of the related arrangements HMRC was aware of to have been defeated. The normal time limits for issuing a notice of assessment will be extended in such cases, so that HMRC has up to 12 months from the date on which the required amount was defeated.
The guidance also notes that, where there has been a tribunal or court defeat of at least one instance of related arrangements, the time limit to give a notice of penalty assessment is the later of:
the normal time limits (generally 12 months after the date on which arrangements were defeated, or the date on which the GAAR Advisory Panel gave an opinion on the arrangements, if later); and
12 months from the date on which the tribunal or court defeat was incurred.
The guidance on time limits for HMRC to issue a notice of assessment for an enabler penalty has been updated to cover the rules that apply where a proposal for arrangements is implemented more than once by a number of arrangements that are substantially the same as each other (‘related arrangements’). Each use of the arrangements will be counted separately for the purpose of the time limits.
HMRC will not give notice of penalty assessment to any enabler of arrangements until the ‘required’ amount of related arrangements is known. This is a change from the previous requirement for more than 50% of the related arrangements HMRC was aware of to have been defeated. The normal time limits for issuing a notice of assessment will be extended in such cases, so that HMRC has up to 12 months from the date on which the required amount was defeated.
The guidance also notes that, where there has been a tribunal or court defeat of at least one instance of related arrangements, the time limit to give a notice of penalty assessment is the later of:
the normal time limits (generally 12 months after the date on which arrangements were defeated, or the date on which the GAAR Advisory Panel gave an opinion on the arrangements, if later); and
12 months from the date on which the tribunal or court defeat was incurred.
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