Mandatory disclosure rules apply to pre-existing arrangements from 2018

HMRC has published its responses to the consultation on the design of draft regulations requiring the disclosure of tax avoidance arrangements to HMRC – specifically the implementation of the Organisation for Economic Co-operation and Development’s model mandatory disclosure rules for common reporting standard avoidance arrangements and opaque offshore structures.

Two key decisions are included in the response document. First HMRC has decided that businesses will have to report pre-existing arrangements from 25 June 2018 rather than from October 2014 as planned originally.

Second businesses will have report to HMRC using XML software because HMRC will not provide an online manual system.

The regulations will come into force in the first half of 2023. At the same time the International Tax Enforcement (Disclosable Arrangements) Regulations 2020 (SI 2020/25) (the regulations implementing the EU’s DAC6 rules in the UK) will be repealed. Any reportable arrangements...