Readers’ forum: Will the spotlight be on me?

My client has implemented a tax planning arrangement which seems to be very similar to that highlighted in Spotlight 63 – property business arrangements involving hybrids. I did not advise on the planning. I didn’t know about it until after the event but I did reluctantly complete the relevant tax returns using information given by the scheme provider.

I have alerted my client to the HMRC spotlight. I advised him that he should instruct me to approach HMRC on his behalf in order to amend his returns and withdraw from the arrangement. He has asked me whether he is obliged to do this. He accepts that if HMRC challenges the arrangement he will have to concede but has said in effect that it is up to HMRC to make the running and he doesn’t see why he should do anything at this...