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Relevant defeats

HMRC may issue a defeat notice and potentially a conduct notice to a person carrying on a business as a promoter where their tax avoidance schemes are regularly defeated in the courts¹.

The definition of what constitutes a relevant defeat is complicated because it is not always the actual scheme marketed by the promoter that is defeated, but one that is similar in structure.². Full details can be found in Promoters of tax avoidance schemes: guidance and Simon's Taxes at A7.305.

The defeat of 'promoted arrangements' (ie relevant arrangements in relation to which the person is a promoter) is the 'relevant defeat' of a single arrangement if that arrangement is not related to any other arrangements which have been promoted by that person³.

A relevant defeat where the arrangements are related means that a defeat occurs in relation to the user of those arrangements and all of the related arrangements (ie all arrangements that are substantially the same as the arrangements that have been