How the DOTAS rules apply for inheritance tax

Key points

• The disclosure of tax avoidance schemes (DOTAS) rules were introduced by FA 2004 Part 7 and have applied to inheritance tax since 6 April 2011.
• The existence of a promoter can determine who needs to make a disclosure.
• An arrangement is notifiable under the DOTAS regime if it is expected to provide an inheritance tax advantage.
• Arrangements that may have been exempted from disclosure between 2011 and 2018 now need to be tested against the current rules.
• A promoter has only five days within which to disclose the arrangements to HMRC.

The disclosure of tax avoidance schemes (DOTAS) regime is intended to provide HMRC with early information about potential tax avoidance arrangements. This information allows HMRC to investigate potential tax loss more rapidly and where necessary to introduce suitable countermeasures. Practitioners who advise on inheritance tax (IHT) planning need to be aware of the rules...