Further changes were made to the above legislation. The Promoters of Tax Avoidance Schemes legislation was introduced in Finance Act 2014. It enables HMRC to issue conduct notices requiring promoters, identified as high risk, to change their behaviour through the use of information powers which affect them, their intermediaries and their clients including the power to name promoters.

Under the new rules, high risk promoters must now publicise the fact that they are being monitored by HMRC. The new rules mean if a promoter does not comply with the terms of a conduct notice they can be issued with a tougher ‘monitoring notice’, which, among other things, will mean the promoter will be publicly named by HMRC; and will have to tell their clients that they are being monitored. If they fail to comply with the conditions of the monitoring notice they could face fines of up to £1 million.

HMRC has already written to a number of promoters warning them of the consequences if they don’t change their behaviour, and has also sent the first conduct notice.