Two updates on new powers in relation to the above regime have been published.

The first measure allows HMRC to issue conduct notices to promoters and monitor promoters who breach a conduct notice. Monitored promoters will be subject to new information powers and penalties which will also apply to intermediaries that continue to represent them after the monitoring commences. The monitored promoter will be named by HMRC (the naming details will include information on why the conduct notice was breached) and required to inform its clients that it is being monitored by HMRC.

Clients of monitored promoters will also be subject to certain obligations (which have a penalty for non-compliance) and extended time limits for assessments. The measure also includes a new requirement under the Disclosure of Tax Avoidance Schemes for further information to be provided by a promoter when requested by HMRC.

This measure took effect for tax from 17 July 2014, the date that the Finance Bill 2014 received Royal Assent and became the Finance Act 2014.

The second measure will create a new power for HMRC to issue a notice to persons using avoidance schemes that are shown to fail in the courts in another party’s litigation, setting out HMRC’s view that the judicial decision also determines those persons’ cases and that they therefore should settle their cases. If the person decides not to settle in response to this notice they will face a penalty if they are unable to show that their case is materially different from the other party’s litigation.

The measure will take effect 2 months after the National Insurance Contributions Bill 2014 receives Royal Assent. It will be applicable to all cases where there is a NICs dispute or appeal on or after this date, and for which there has been or will be a relevant qualifying judgment.