Overview of the Act Disclosure of NICs avoidance schemes and arrangements
11.Part 7 of the Finance Act 2004 requires disclosure of arrangements or proposals for arrangements where:
	use of the arrangements might be expected to confer a tax advantage;
	that tax advantage might be expected to be the main benefit, or a main benefit, of using the arrangements; and
	the arrangements fall within a description prescribed in Treasury regulations.
12.The Finance Act 2004 disclosure provisions apply to income tax, corporation tax, capital gains tax, stamp duty land tax, stamp duty reserve tax, inheritance tax and petroleum revenue tax. The Tax Avoidance Schemes (Prescribed Descriptions of Arrangements) Regulations 2004 (SI 2004/1863), as amended, describe the notifiable arrangements in relation to income tax, corporation tax and capital gains tax. These include arrangements that concern employment. The Tax Avoidance Schemes (Information) Regulations 2004 (SI 2004/1864), as amended, specify the information required to be disclosed. The Tax Avoidance Schemes (Promoters and Prescribed Circumstances) Regulations 2004 (SI 2004/1865), as amended, specify the circumstances in which persons are not to be treated as promoters.
13.It was recognised that many employment schemes relate to both tax and NICs. However, NICs were not included in the disclosure rules because that would have required NICs primary legislation. In practice the tax disclosure rules provide the information necessary to counter both tax and NICs avoidance in the usual situation where a scheme seeks to avoid both. But they do not provide information in relation to schemes seeking to avoid only NICs. Section 7 provides for the tax disclosure rules to apply to NICs proposals and arrangements as they apply to income tax schemes.