Notifiable arrangements under the DOTAS rules

HMRC applied to the First-tier Tribunal to make an order under FA 2004 s 314A or 306A that particular arrangements should be treated as notifiable within the meaning of FA 2004 s 306(1) – the disclosure of tax avoidance schemes (DOTAS) regime.

The HMRC officer explained how the arrangements which were a form of a contractor loan scheme worked. In essence participants contract to provide services to a trust (FMST) in return for a fee a monthly retainer and a loan. They declared the retainer as taxable income in their tax returns but not the loan on the basis that it was not taxable.

HMRC said the appellant Opus Bestpay Ltd was the promoter of the arrangements and should have notified them under DOTAS. Opus claimed there was no need to notify because there was no tax advantage as defined in s...