BKM509400 - Interaction of the Code with other measures: enablers of tax avoidance

F(No2)A17/SCH16 introduced penalties for any person who enables the use of abusive tax arrangements that are later defeated. An enabler is any person who is responsible, to any extent, for the design or marketing of, or otherwise facilitating another person to enter into, abusive tax arrangements. When such arrangements are defeated in court or at the tribunal, or are otherwise counteracted, each person who enabled those arrangements may be liable to a penalty.

The enablers legislation only applies to a person if they enable abusive tax arrangements that are entered into on or after 16 November 2017, which is the date of Royal Assent to F(No2)A17. The enabling activity must also have been undertaken on or after this date.

A bank may be compliant with the Code, but could still be a financial enabler or an enabling participant to abusive tax arrangements. More information on this can be found in the guidance on what makes a person an enabler of tax avoidance.