HMRC has the power to stop persons promoting certain arrangements that may give rise to a tax advantage. HMRC can also require such persons to maintain certain conduct and monitor them if they fail to do so. This is known as the promoters of tax avoidance scheme (POTAS) regime. For an overview of the regime, see A7.301. For the key definitions, see A7.301A.
This article considers the meaning of a relevant defeat for the purposes of the issue of a defeat notice or a conduct notice to a promoter, see A7.302–A7.305.
Relevant defeat
With effect from 15 September 2016, the POTAS regime was amended to allow HMRC to issue a defeat notice and potentially a conduct notice to persons 'carrying on a business as a promoter' (see A7.301A) whose tax avoidance schemes are regularly defeated in the courts1.
The definition of '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. Therefore, it relies on a number of definitions
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