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HMRC can issue a conduct notices where it becomes aware, at any time, that a person 'carrying on a business as a promoter' has satisfied one or more of the threshold conditions discussed below during the last three years (except where a conduct or monitoring notice is already in effect)¹.

A conduct notice can also be issued where the person is regarded as having met a threshold condition during the last three years by virtue of the anti-avoidance rules regarding other entities controlled or significantly influenced by that person². This prevents a person from avoiding a conduct notice by creating a promoter entity that has itself not met a threshold condition. This is referred to as the 'related body rules'. See Simon's Taxes at A7.302.

As a result, a conduct notice can be given to both the person who actually satisfied the threshold condition discussed below, and another person to whom the threshold condition³ is attributed.