The Government has published a series of consultations following the Chancellor’s Spring Statement.

As anticipated, the Spring Statement did not contain any major tax changes. However, the Chancellor did announce a series of measures on which the Treasury has since published consultations, including a range of proposals to address tax avoidance. A summary of some of the measures on which the government is consulting is set out below.

1. Advance tax certainty for major projects

Building on the Corporate Tax Roadmap that was published in last year’s Autumn Budget, the Government is consulting on developing a new process which would provide “advance tax certainty” to corporate entities that are undertaking major investment projects. Among other things, the process would involve an early engagement discussion with HMRC, after which parties would prepare a submission for ‘advance certainty clearance’.

The consultation addresses, and invites views on, the nature and scope of this process, as well as its eligibility requirements. It closes on 17 June and can be read in full here.

2. Research and Development tax relief advance clearances

The Corporate Tax Roadmap included a commitment from the Government that it would launch a consultation on widening the use of advance clearances in R&D reliefs. That consultation has now been launched, and outlines a variety of options being considered by the Government aimed at (1) reducing error and fraud; (2) improving the customer experience; and (3) providing certainty to businesses.

The consultation is open until 26 May 2025, and can be read in full here.

3. Reform of behavioural penalties

A consultation has been launched which seeks views on “options to improve the financial penalties that apply when inaccuracies are found in returns and documents submitted to HMRC and where taxpayers do not meet their obligations to notify HMRC of circumstances that affect their tax liability”. Two approaches are explored: (1) reforming the existing framework of the penalty system whilst simplifying how penalties are calculated and applied; or (2) introducing a “more fundamental redesign of penalties to improve clarity and consistency”.

The consultation is open until 26 May 2025, and can be found here.

4. Tax Avoidance

A range of measures have been proposed as part of a targeted campaign to “close in on promoters (and other enablers) of tax avoidance schemes”.

The Government has launched a consultation on four proposals in particular:

1. Expanding the scope of the Disclosure of Tax Avoidance Schemes (DOTAS) regime. This includes: (a) introducing a new hallmark to target disguised remuneration schemes; (b) creating a new criminal offence of failing to disclose notifiable arrangements to HMRC under DOTAS; and (c) updating the DOTAS civil penalty regime to allow HMRC to determine penalties directly.
2. Introducing a Universal Stop Notice and Promoter Action Notice. The consultation explains that promoters of tax avoidance schemes will often close down companies subject to Stop Notices, only to resurface and promote a similar scheme operating from a different company with different directors. To address this, the Government proposes the introduction of a Universal Stop Notice that would “require all persons to stop promoting or enabling schemes which are the same or similar to that outlined in the notice”.

The Government also proposes the introduction of Promoter Action Notices which would “require businesses to stop providing products or services to promoters and enablers of tax avoidance where those products or services are connected to the promotion of avoidance”.

3. Tackling those behind the promotion of avoidance schemes. In order to help HMRC navigate the labyrinthine structures of tax avoidance schemes and collect information from relevant parties, the Government is proposing to introduce a “targeted Connected Parties information Notice (CPIN) which would compel persons that HMRC suspects to be connected to the promotion of a marketed tax avoidance scheme to provide relevant information and documents”. Also proposed is the introduction of a Promoter Financial institution Notice (PFIN) which would “allow HMRC to obtain access to promoters of tax avoidance financial or banking data held by financial institutions without approval from the independent tribunal”.
4. Exploring options to tackle legal professionals designing or contributing to the promotion of avoidance schemes. A number of measures are proposed, including: changes to the DOTAS legislation in respect of legal professionals that promote tax avoidance schemes; introducing a deemed waiver of legal professional privilege in certain circumstances where promoters market their schemes on the basis that they have been endorsed by a legal professional; and engaging with regulators and professional bodies in the legal sector, including the Bar Standards Board, so they have the information to help them enforce their standards for members involved in promoting, enabling or implementing tax avoidance schemes.

The consultation is open until 18 June 2025 an can be read in full here.

A further consultation on enhancing HMRC’s powers to tackling tax advisors who facilitate non-compliance has also been published which seeks to:

• explore proposals to make it easier for HMRC to gather information from tax advisers about their actions that lead to non-compliance that harms the tax system;
• consider methods of setting appropriate deterrents for tax advisers where their actions lead to non-compliance that harms the tax system;
• explore further disclosure by HMRC of concerns about tax advisers to professional bodies, aiming to tackle poor behaviour early through professional bodies; and
• consider broadening the scope of the publication of the details of tax advisers who have been the subject of HMRC sanctions.

This consultation is open until 7 May 2025, and can be read here.