Application that arrangements were notifiable under DOTAS

EDF a tax practice offered advice on Delta arrangements. These involved the setting up of employee benefit trusts followed by deeds of variation implementing the Delta rewards platform. The practice has since entered into creditors’ voluntary liquidation.

HMRC considered the arrangements were notifiable under the disclosure of tax avoidance schemes regime (FA 2004 s 306A). It applied for an order under s 314A.

The First-tier Tribunal considered whether the requirements in s 306 were satisfied. It considered the Delta arrangements amounted to a scheme and a series of pre-planned transactions. They fell within the meaning of ‘arrangements’ in s 318 and s 306. Although the original engagement letters were ‘ostensibly’ about the tax consequences of different ways of rewarding directors they immediately advised on the creation of an employee benefit trust. It was likely EDF gave perhaps oral advice to users at the...