Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Readers' forum : DOTAS worries

23 August 2016
Issue: 4564 / Categories: Forum & Feedback

Arrangements on rented property advised, but HMRC may seek a penalty.

I have been dealing with two arrangements on rented property.

In the first A rents a property to his limited company B Ltd for a small rent and B Ltd rents it to a third party at a higher rent. In the second scenario C rents a property to his wife D for a small rent and D rents it to a third party at a higher rent. I wrote to HMRC in 2013 explaining the first arrangement and received a letter from the Anti-Avoidance Group (Intelligence) saying that this was acceptable.

These arrangements have come to the attention of HMRC’s Counter-Avoidance DOTAS (Disclosure of Tax Avoidance Schemes) Enforcement department which issued notices under FA 2004 s 313A. This was because I had not notified under DOTAS and received a registration as a promoter of a tax avoidance schemes (I am an accountant).

I replied...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

back to top icon