Introduction Details of the Schedule
3.Paragraph 1 states that Part 7, which comprises sections 306 – 319 of FA 2004 and contains the primary legislation in relation to the disclosure regime, is amended by the paragraphs which follow.
4.Paragraph 2 amends section 307 of FA 2004, which defines “promoter” so that the definition includes persons who market fully designed schemes in order to solicit clients to whom they will sell the scheme. In practice promoters often market schemes through introducers, persons whose role is to introduce potential clients to the promoter, and section 307 is also amended to include a definition of “introducer”.
5.Paragraph 3 amends section 308(2) of FA 2004, which defines the “relevant date”, i.e. the beginning of the period within which a disclosure must be made, so as to insert a new trigger point for the disclosure of a fully designed scheme that a promoter markets to potential clients, in line with the revised definition of ‘promoter’ in section 307 as amended by paragraph 2.
6.Paragraph 4 extends section 313A(1) of FA 2004 to introducers. Section 313A allows HMRC to require persons they suspect of being promoters (or, as a consequence of this amendment, introducers) of a notifiable scheme to explain why they think they are not required to disclose the scheme. This enables HMRC to seek information where it is aware that a person is marketing a scheme but is not certain if that person is the scheme promoter or merely an introducer.
7.Paragraph 5 inserts in section 318(1) of FA 2004 definitions of “introducer”, “makes a firm approach” and “makes a marketing contact” which correspond to the definitions in new subsections (4A) to (4C) of section 307 of FA 2004.
8.Paragraph 6 inserts a new section 313ZA in FA 2004.
9.Paragraph 7 makes a consequential amendment to section 316 of FA 2004, adding a reference to new section 313ZA(1). Section 316 allows HMRC to specify the form and manner in which information must be provided. It is used to specify such matters as forms on which information is to be provided and the address to which the form is to be sent.
10.Paragraph 8 amends section 317(2) so that regulations may make different provision for different cases, allowing regulations to be tailored to different circumstances that may arise.
11.Paragraph 9 inserts a new section 313C in FA 2004.
12.Paragraph 10 amends section 98C of TMA, which provides for penalties for non-compliance with duties under Part 7.