The measure is designed to stop people re-organising their business so that they either share control of a promoting business or put a person or persons between themselves and the promoting business and is effective from 8 March 2017.
HM Revenue and Customs (HMRC) said in a policy statement published on the day of the government’s Spring Budget, the measure was designed to support the government’s efforts to protect revenue.
Its impact will fall on individuals or businesses that are engaging in or promoting tax avoidance.
UK chancellor Philip Hammond, in the Budget, said the government had secured £140bn ($171bn, €161bn) in additional tax revenue by taking robust action to tackle tax avoidance, evasion, and non-compliance.
“These actions have helped the UK achieve one of the lowest tax gaps in the world,” he said.
Hammond also referred to new penalties that are coming down the pipeline.
“From July we will introduce a tough new financial penalty for professionals who enable a tax avoidance arrangement that is later defeated by HMRC,” he said.
