ERSM210020 - Disclosures

What the rules provide

»Ê¹ÚÌåÓýapp rules are targeted at obtaining details of tax avoidance schemes. »Ê¹ÚÌåÓýappre are a series of tests which the promoter is required to consider in deciding whether a disclosure is necessary. »Ê¹ÚÌåÓýappse tests are explained in detail within section 4 of the DOTAS guidance.

Section 5 of the DOTAS guidance details a number of descriptions of arrangements that are referred to as ‘hallmarks�.

»Ê¹ÚÌåÓýappre are currently 8 hallmarks, with the following being particularly relevant:

  • Hallmark 8 - Employment income, IT, National Insurance contribution; and
  • Hallmark 9 - Financial products Income Tax, Capital Gains Tax Corpotation Tax

Section 5 of the DOTAS guidance provides details of the conditions applicable to each of these hallmarks and examples of their applicability.

Setting up and operating a tax advantaged employee share scheme should not meet condition 3 of the financial products hallmark. In HMRC’s view, the types of shares which are stipulated in the relevant scheme rules should not contain any terms that it would be reasonable for an informed observer to conclude are unlikely to be entered into if there were no tax advantage.

How to make a Disclosure

Please see section 11 of the DOTAS guidance.