TC09681 - [2025] UKFTT 01333 (TC)

Fecha: 10-Nov-2025

Issue 2 - if so, did Moir fail to comply with its obligations under sections 308 and 313A FA 2004 ?

Issue 2 - if so, did Moir fail to comply with its obligations under sections 308 and 313A FA 2004?

112.

This issue arises only because I have found (above) in HMRC’s favour, that Moir was the promotor of notifiable arrangements. I consider the obligations under Section 308 and 313A separately.

113.

The relevant parts of Section 308 provide:

308 Duties of promoter

…

(3)

A person who is a promoter in relation to notifiable arrangements must, within the prescribed period after the date on which he first becomes aware of any transaction forming part of the notifiable arrangements, provide the Board with prescribed information relating to those arrangements, unless those arrangements implement a proposal in respect of which notice has been given under subsection (1).

114.

The terms “prescribed period” and “prescribed information” are defined in Regulations 4 and 5 of the Tax Avoidance Schemes (Information) Regulations 2012. The relevant parts of Regulation 4 provide:

Prescribed information in respect of notifiable proposals and arrangements

(1)

The information which must be provided to HMRC by a promoter under section 308(1) or (3) (duties of a promoter) in respect of a notifiable proposal or notifiable arrangements is sufficient information as might reasonably be expected to enable an officer of HMRC to comprehend the manner in which the proposal or arrangements are intended to operate, including –

(a)

the promoter’s name and address;

(b)

details of the provision of the Arrangements Regulations … by virtue of which the arrangements or proposed arrangements are notifiable;

(c)

a summary of the arrangements or proposed arrangements and the name (if any) by which they are known;

(d)

information explaining each element of the arrangements or proposed arrangements (including the way in which they are structured) from which the tax advantage expected to be obtained under those arrangements arises; and

(e)

the statutory provisions, relating to any of the prescribed taxes, on which that tax advantage is based.

…

(5)

In this regulation—

“the Arrangements Regulations” means the Tax Avoidance Schemes (Prescribed Descriptions of Arrangements) Regulations 2006;

115.

The relevant parts of Regulation 5 provide:

5.— Time for providing information under section 308, 308A, 309 or 310

(1)

The period or time (as the case may be) within which—

(a)

the prescribed information under section 308, 309 or 310,

…

(5)

In any other case of a notification under section 308(3), the prescribed period is the period of 5 days beginning on the day after that on which the promoter first becomes aware of any transaction forming part of arrangements to which that subsection applies.

116.

I am satisfied that Moir, as the promoter of notifiable arrangements, was obliged to comply with its obligations under Section 308(3). Therefore, within five days of first becoming aware of any transaction using the Jarvis annuity model, Moir was required to send HMRC sufficient information as might reasonably be expected to enable HMRC to comprehend the manner in which the Jarvis annuity model was intended to operate

117.

In their correspondence with Moir HMRC have suggested that the Jarvis annuity model was in use from March 2018. Having considered the correspondence in the bundle, I am satisfied that Jarvis sent an offer letter to Individual CMN on 20 April 2018, and an (unsigned) employment contract is also dated 20 April 2018 (although the assignment period start date is said to be 8 January 2018). I am satisfied Moir was aware of this transaction as Jarvis required individual CMN to send to Moir the hard copy signed copy of the deed and annuity agreement.

118.

I am also satisfied that Moir had not provided any information about the Jarvis annuity model to HMRC prior to HMRC’s opening letter of 11 December 2020 (or provided sufficient information to HMRC thereafter).

119.

Therefore, Moir failed to comply with its obligations under Section 308 FA 2004.

120.

With regard to Section 313A, the relevant parts of this section provide:

313A Pre-disclosure enquiry

(1)

Where HMRC suspect that a person (P) is the promoter or introducer of a proposal, or the promoter of arrangements, which may be notifiable, they may by written notice require P to state–

(a)

whether in P's opinion the proposal or arrangements are notifiable by P, and

(b)

if not, the reasons for P's opinion.

(2)

A notice must specify the proposal or arrangements to which it relates.

(3)

For the purpose of subsection (1)(b)–

(a)

it is not sufficient to refer to the fact that a lawyer or other professional has given an opinion,

(b)

the reasons must show, by reference to this Part and regulations under it, why P thinks the proposal or arrangements are not notifiable by P, and

(c)

in particular, if P asserts that the arrangements do not fall within any description prescribed under section 306(1)(a), the reasons must provide sufficient information to enable HMRC to confirm the assertion.

(4)

P must comply with a requirement under or by virtue of subsection (1) within–

(a)

the prescribed period, or

(b)

such longer period as HMRC may direct.

121.

As found above, HMRC sent a formal notice under Section 313A FA 2004 to Moir on 18 January 2021. HMRC required a response by 17 February 2021. No response was received from, or on behalf of, Moir. Therefore, Moir failed to comply with its obligations under Section 313A FA 2004.

122.

I decide issue 2 in favour of HMRC. I am satisfied Moir failed to comply with its obligations under both Sections 3018 and 313A 2004.