Policy paper

Draft legislation 바카라 사이트� Conduct of tax agents (accessible version)

Published 21 July 2025

1. Conduct of tax agents

(1) Schedule 1 contains provision about the conduct of tax agents.

(2) Schedule 1 comes into force on 1 April 2026.

(3) The Treasury may by regulations make transitional or saving provision in connection with the coming into force of any provision in Schedule 1.

(4) The power to make regulations under subsection (3) includes power to make different provision for different purposes.

(5) Regulations under this section are to be made by statutory instrument.

SCHEDULE 1

CONDUCT OF TAX AGENTS

Part 1

AMENDMENTS TO SCHEDULE 38 TO THE FINANCE ACT 2012

Introduction

1 Schedule 38 to FA 2012 (tax agents: dishonest conduct) is amended as follows.

Meaning of 바카라 사이트渢ax agent바카라 사이트�

1. 2 In paragraph 2 (tax agent) 바카라 사이트�
   1. (a) in sub-paragraph (1), for 바카라 사이트渁n individual바카라 사이트� substitute 바카라 사이트渁 person바카라 사이트�;
   2. (b) in sub-paragraph (2) 바카라 사이트�
      1. (i) for 바카라 사이트淚ndividuals바카라 사이트� substitute 바카라 사이트淧ersons바카라 사이트�;
      2. (ii) for 바카라 사이트渢he organisations바카라 사이트� substitute 바카라 사이트渁ny organisation바카라 사이트�.

Deliberate conduct

1. 3 For paragraph 3 and the italic heading before it (dishonest conduct), substitute 바카라 사이트�

   1. 바카라 사이트淒eliberate conduct

      1. 3 (1) A person 바카라 사이트渆ngages in deliberate conduct바카라 사이트� if, in the course of acting as a tax agent, the person deliberately does, or omits to do, something with a view to bringing about a loss of tax revenue.
      2. (2) It does not matter whether 바카라 사이트�
         1. (a) a loss is actually brought about, or
         2. (b) the person is acting on the instruction of clients.
      3. (3) A loss of tax revenue would be brought about for these purposes if clients were to 바카라 사이트�
         1. (a) account for less tax than they are required to account for by law,
         2. (b) obtain more tax relief than they are entitled to obtain by law,
         3. (c) account for tax later than they are required to account for it by law, or
         4. (d) obtain tax relief earlier than they are entitled to obtain it by law.
      4. (4) 바카라 사이트淭ax relief바카라 사이트� includes 바카라 사이트�
         1. (a) any exemption from or deduction or credit against or in respect of tax, and
         2. (b) any repayment of tax.바카라 사이트�

Conduct notices etc

1. 4 (1) Omit Part 2 (establishing dishonest conduct).
2. (2) After Part 3 insert 바카라 사이트�

   1. 바카라 사이트淧art 3A

   2. CONDUCT NOTICES
      1. 25B (1) This paragraph applies if HMRC determine that a person is engaging in or has engaged in deliberate conduct.
      2. (2) An authorised officer (or an officer of Revenue and Customs with the approval of an authorised officer) may notify the person of the determination.
      3. (3) The notice must state the grounds on which the determination was made.
      4. (4) For the effect of notifying the person, see paragraph 29(2).
      5. (5) A notice under this paragraph is referred to as a 바카라 사이트渃onduct notice바카라 사이트�.
      6. (6) In relation to a conduct notice, a reference to 바카라 사이트渢he determination바카라 사이트� is to the determination forming the subject of the notice.바카라 사이트�
3. (3) In paragraph 29 (assessment of penalties) 바카라 사이트�
   1. (a) in sub-paragraph (2), omit from 바카라 사이트渁nd either바카라 사이트� to the end;
   2. (b) omit sub-paragraph (3).

Power to obtain files etc

1. 5 (1) In paragraph 7 (circumstances in which power is exercisable) 바카라 사이트�
   1. (a) in sub-paragraph (1), omit 바카라 사이트渁nd only with the approval of the tribunal바카라 사이트�;
   2. (b) after sub-paragraph (1) insert 바카라 사이트�
      1. 바카라 사이트�(1A) An officer of Revenue and Customs 바카라 사이트�
         1. (a) may ask for the approval of the tribunal before exercising the power in paragraph 8 in respect of a tax agent (and for the effect of obtaining such approval see paragraph 20 (appeals));
         2. (b) may not without the approval of the tribunal exercise the power in paragraph 8 in respect of a person other than a tax agent.바카라 사이트�;
      2. (c) for sub-paragraph (2) substitute 바카라 사이트�
         1. 바카라 사이트�(2) Case A is where an officer of Revenue and Customs has reason to suspect that a person is engaging in, or has engaged in, deliberate conduct.바카라 사이트�;
      3. (d) in sub-paragraph (4) 바카라 사이트�
         1. (i) omit 바카라 사이트渄etermination or바카라 사이트�;
         2. (ii) omit 바카라 사이트渃onfirmed or바카라 사이트�.
2. (2) In paragraph 20 (appeal against file access notice) 바카라 사이트�
   1. (a) after sub-paragraph (1) insert 바카라 사이트�
      1. 바카라 사이트�(1A) If 바카라 사이트�
         1. (a) the document-holder is the tax agent, and
         2. (b) the giving of the file access notice was not approved by the tribunal (see paragraph 7(1A)(a)), the document-holder may appeal against the file access notice or any requirement in it.바카라 사이트�;
   2. (b) in sub-paragraph (2), after 바카라 사이트渁ppeal바카라 사이트� insert 바카라 사이트渦nder sub-paragraph (1) or (1A)바카라 사이트�.

File access notice: daily penalties

1. 6 (1) After paragraph 23 insert 바카라 사이트�

   1. 바카라 사이트淚ncreased daily default penalty

   2. 23A (1) This paragraph applies if 바카라 사이트�
      1. (a) a penalty under paragraph 23 is assessed in respect of a person바카라 사이트檚 failure to comply with a file access notice,
      2. (b) the failure continues for more than 30 days beginning with the date on which notification of that assessment was issued, and
      3. (c) HMRC has (at any time) told the person that an application may be made under this paragraph for an increased daily penalty to be assessable.
   3. (2) An officer of Revenue and Customs may make an application to the tribunal for an increased daily penalty to be assessable on the person.
   4. (3) If the tribunal decides that an increased daily penalty should be assessable 바카라 사이트�
      1. (a) the tribunal must determine the day from which the increased daily penalty is to apply and the maximum amount of that penalty (바카라 사이트渢he new maximum amount바카라 사이트�), and
      2. (b) from that day, paragraph 23 has effect in the person바카라 사이트檚 case as if the new maximum amount were substituted for the amount for the time being specified there.
   5. (4) The new maximum amount may not be more than 拢1,000.
   6. (5) But subject to that, in determining the new maximum amount the tribunal must have regard to 바카라 사이트�
      1. (a) the likely cost to the person of complying with the notice,
      2. (b) any benefits to the person of not complying with it, and
      3. (c) any benefits to anyone else resulting from the person바카라 사이트檚 non-compliance.
   7. (6) If the tribunal makes a determination under this paragraph, HMRC must notify the person.
   8. (7) The notification must specify the new maximum amount and the day from which it applies.바카라 사이트�
2. (2) In paragraph 31 (appeal against penalty), after sub-paragraph (1) insert 바카라 사이트�
   1. 바카라 사이트�(1A) But sub-paragraph (1)(b) does not give a right of appeal against the amount of an increased daily penalty payable as a result of paragraph 23A (increased daily default penalty).바카라 사이트�

File access notice: penalties for inaccurate documents etc

1. 7 (1) After paragraph 25 insert 바카라 사이트�

   1. 바카라 사이트淧enalties for inaccurate documents

   2. 25A (1) If a person, in purported compliance with a file access notice, provides a document that contains an inaccuracy, the person is liable to a penalty not exceeding 拢3,000 where 바카라 사이트�
      1. (a) the inaccuracy is deliberate or due to a failure by the person to take reasonable care,
      2. (b) the person knows of the inaccuracy at the time the document is provided but does not inform HMRC at that time, or
      3. (c) the person discovers the inaccuracy some time later and fails to take reasonable steps to inform HMRC.
   3. (2) Where the document contains more than one inaccuracy, a penalty is payable for each inaccuracy.바카라 사이트�
2. (2) In paragraph 24 (failure to comply with time limit), for 바카라 사이트渙r 23바카라 사이트� substitute 바카라 사이트�, 23 or 25A바카라 사이트�.
3. (3) In paragraph 25(1) (reasonable excuse), for 바카라 사이트渙r 23바카라 사이트� substitute 바카라 사이트�, 23 or 25A바카라 사이트�.

Sanctions for deliberate conduct

1. 8 (1) For paragraph 26 and the italic heading before it (penalty for dishonest conduct) substitute 바카라 사이트�

   1. 바카라 사이트淧enalty for deliberate conduct

   2. 26 (1) A person who engages in deliberate conduct is liable to a penalty.
   3. (2) The penalty to which the person is liable is 바카라 사이트�
      1. (a) in a case where there is potential lost revenue 바카라 사이트�
         1. (i) 70% of the potential lost revenue, or
         2. (ii) if the person disclosed the deliberate conduct, the percentage of the potential lost revenue determined in accordance with sub-paragraphs (3) and (4), or
      2. (b) in a case where there is no potential lost revenue, 拢7,500.
   4. (3) If a person who is liable to a penalty under this paragraph disclosed the deliberate conduct, HMRC must reduce the penalty from 70% of the potential lost revenue to a percentage of the potential lost revenue that reflects the quality of the disclosure.
   5. (4) But the percentage may not be reduced to a percentage that is below 바카라 사이트�
      1. (a) in the case of a prompted disclosure, 35%, and
      2. (b) in the case of an unprompted disclosure, 20%.
   6. (5) Where a person would, but for this sub-paragraph, be liable to a penalty under this paragraph of an amount that is lower than 拢7,500, the person is instead liable to a penalty of that amount.
   7. (6) Where a person would, but for this sub-paragraph, be liable to a penalty under this paragraph of an amount that is higher than 拢1,000,000, the person is instead liable to a penalty of that amount.
   8. (7) This paragraph is subject to paragraphs 26B (increased penalties) and 27 (special reduction).

Disclosure of conduct

1. 26A (1) For the purposes of paragraph 26, a person 바카라 사이트渄iscloses바카라 사이트� deliberate conduct by 바카라 사이트�
   1. (a) telling HMRC about it
   2. (b) giving HMRC reasonable help in identifying the client or clients concerned and in quantifying the loss of tax revenue (if any) brought about by it, and
   3. (c) allowing HMRC access to records for the purpose of ensuring that any such loss is recovered or otherwise properly accounted for.
2. (2) A disclosure is 바카라 사이트渦nprompted바카라 사이트� if it is made at a time when the person has no reason to believe that HMRC have discovered or are about to discover the deliberate conduct.
3. (3) Otherwise, a disclosure is 바카라 사이트減rompted바카라 사이트�.
4. (4) In relation to disclosure, 바카라 사이트渜uality바카라 사이트� includes timing, nature and extent.

Increased penalties

1. 26B (1) Sub-paragraph (6) applies where 바카라 사이트�
   1. (a) a person is liable to a penalty under paragraph 26, and
   2. (b) in the period of 20 years ending with the day on which the person became liable to the penalty, either condition A or B is met.
2. (2) Condition A is that the person has been given a notice of assessment to a penalty under paragraph 26 on more than 2, but fewer than 6, occasions.
3. (3) Condition B is that the person has been given a notice of assessment to a penalty under paragraph 26 on 6 or more occasions.
4. (4) For the purposes of sub-paragraphs (2) and (3), a notice of assessment to a penalty under paragraph 26 is not to be taken into account if 바카라 사이트�
   1. (a) the notice was given to the person more than 4 years before the day mentioned in sub-paragraph (1)(b), and
   2. (b) in the period of 4 years after the notice was given, the person was not given another such notice of assessment.
5. (5) Where 바카라 사이트�
   1. (a) a notice of assessment to a penalty under paragraph 26 is not to be taken into account in accordance with sub-paragraph (4), and
   2. (b) the person had previously been given one or more other notices of assessment to a penalty under paragraph 26,
6. those previous notices are also not to be taken into account for the purposes of sub-paragraphs (2) and (3).
7. (6) Paragraph 26 applies in relation to the penalty mentioned in sub-paragraph (1)(a) as if 바카라 사이트�
   1. (a) where condition A is met 바카라 사이트�
      1. (i) each reference to 70% of the potential lost revenue were a reference to 85% of the potential lost revenue;
      2. (ii) the reference to 拢1,000,000 were a reference to 拢5,000,000;
   2. (b) where condition B is met바카라 사이트�
      1. (i) each reference to 70% of the potential lost revenue were a reference to 100% of the potential lost revenue;
      2. (ii) sub-paragraph (6) (maximum amount) were omitted.

Potential lost revenue

1. 26C(1) For the purposes of paragraph 26 the 바카라 사이트減otential lost revenue바카라 사이트� in relation to a person who engages in deliberate conduct means the potential lost revenue attributable to that deliberate conduct.
2. (2) The potential lost revenue attributable to any deliberate conduct is determined in accordance with sub-paragraphs (3) to (6).
3. (3) If the deliberate conduct relates to 바카라 사이트�
   1. (a) giving a return or other document containing an inaccuracy to HMRC, or
   2. (b) a failure to notify an under-assessment to HMRC, the potential lost revenue is the potential lost revenue under the applicable provisions of paragraphs 5 to 8 of Schedule 24 to FA 2007.
4. (4) If the deliberate conduct relates to a failure to comply with an obligation specified in the table in paragraph 1 of Schedule 41 to FA 2008 (failure to notify etc), the potential lost revenue is the potential lost revenue under the applicable provisions of paragraph 7 of that Schedule.
5. (5) If the deliberate conduct relates to a failure to make or deliver a return, or to deliver any other document, specified in the table in paragraph 1 of Schedule 55 to FA 2009 (failure to make returns etc), the potential lost revenue is the amount of the liability to tax under the applicable provisions of paragraph 24 of that Schedule.
6. (6) If the deliberate conduct relates to a failure to make a return listed in the table in paragraph 1 of Schedule 25 to FA 2021 (deliberately withholding information) where the condition in paragraph 3(2) of that Schedule is met, the potential lost revenue is the amount of the liability to tax under the applicable provisions of paragraph 11 of that Schedule.
7. (7) In its application for the purposes of sub-paragraph (3), paragraph 6 of Schedule 24 to FA 2007 has effect as if 바카라 사이트�
   1. (a) sub-paragraph (1) were omitted;
   2. (b) in sub-paragraph (4), for paragraphs (b) to (d) there were substituted 바카라 사이트�
      1. 바카라 사이트�(b) other understatements.바카라 사이트�

Quantifying amount of potential lost revenue

1. 26D In the case of a penalty which is assessed at a time before HMRC has been given any return or other information required to quantify the potential lost revenue to which the penalty relates 바카라 사이트�
   1. (a) HMRC is to determine the potential lost revenue to the best of HMRC바카라 사이트檚 information and belief, and
   2. (b) if the return or other information is subsequently provided to HMRC, the penalty must be re-assessed by reference to the amount of tax shown to be due and payable in that return or other information (but subject to any amendments or corrections to the return).바카라 사이트�
2. (2) In paragraph 27(1) and (2)(a) (special reduction), for 바카라 사이트溌�5,000바카라 사이트� substitute 바카라 사이트溌�7,500바카라 사이트�. (3) In paragraph 28 (power to publish details) 바카라 사이트�
   1. (a) for sub-paragraph (1), substitute 바카라 사이트�
      1. 바카라 사이트�(1) The Commissioners must publish information about a person if the person incurs a penalty under paragraph 26 of more than 拢7,500.바카라 사이트�;
   2. (b) omit sub-paragraph (3);
   3. (c) in sub-paragraph (4), after 바카라 사이트�(5)바카라 사이트� insert 바카라 사이트�, (7)바카라 사이트�.

Assessment and appeals

1. 9 (1) In paragraph 30(3)(a) (deadline for assessment), omit 바카라 사이트�(see paragraph 29(2))바카라 사이트�.
2. (2) In paragraph 31 (appeals), in sub-paragraph (1)(a), after 바카라 사이트淧art 3바카라 사이트� insert 바카라 사이트渙r 4바카라 사이트�.

Power to change amount of penalties

1. 10 In paragraph 35 (power to change amount of penalties) 바카라 사이트�
   1. (a) for sub-paragraph (1), substitute 바카라 사이트�
      1. 바카라 사이트�(1) The Treasury may by regulations amend an amount for the time being specified in any of paragraphs 22(1), 23, 23A(4), 25A(1), 26(5) and (6), 26B(6), 27(1) and (2)(a) and 28(1) to reflect a change in the value of money.바카라 사이트�;
   2. (b) omit sub-paragraph (2).

Meaning of 바카라 사이트渢ax바카라 사이트�

1. 11 In paragraph 37 (tax) 바카라 사이트�
   1. (a) in sub-paragraph (1), after paragraph (la) insert 바카라 사이트�
      1. 바카라 사이트�(lb) diverted profits tax,
      2. (lc) multinational top-up tax,
      3. (ld) domestic top-up tax,
      4. (le) insurance premium tax,
      5. (lf) annual tax on enveloped dwellings,
      6. (lg) plastic packaging tax,
      7. (lh) economic crime (anti-money laundering) levy,
      8. (li) relevant foreign tax,
      9. (lj) digital services tax,
      10. (lk) soft drinks industry levy,바카라 사이트�;
   2. (b) after sub-paragraph (4) insert 바카라 사이트�
      1. 바카라 사이트�(5) In this paragraph 바카라 사이트渞elevant foreign tax바카라 사이트� has the same meaning as in Schedule 36 to FA 2008 (see paragraph 63(4) of that Schedule).바카라 사이트�

Minor and consequential amendments

1. 12 In paragraph 1 (overview) 바카라 사이트�
   1. (a) omit sub-paragraph (b);
   2. (b) after sub-paragraph (c) insert 바카라 사이트�
      1. 바카라 사이트�(ca) Part 3A confers power on HMRC to issue conduct notices,바카라 사이트�.
2. 13 In each of the following provisions, for 바카라 사이트渄ishonest바카라 사이트� substitute 바카라 사이트渄eliberate바카라 사이트�바카라 사이트�
   1. (a) the Schedule heading;
   2. (b) paragraph 1(a) and (d) (overview);
   3. (c) paragraph 9(3)(b) (relevant documents);
   4. (d) paragraph 13(2) (file access notice: approval by tribunal);
   5. (e) the Part 4 heading;
   6. (f) paragraph 28(2)(e) and (g) (power to publish details);
   7. (g) paragraph 30(4) and (5) (assessment of penalties);
   8. (h) paragraph 40 (loss of tax revenue).
3. 14 (1) In each of the following provisions, for 바카라 사이트渁n individual바카라 사이트� substitute 바카라 사이트渁 person바카라 사이트�바카라 사이트�
   1. (a) paragraph 7(3)(a) (file access notice: circumstances in which power is exercisable);
   2. (b) paragraph 13(2) (file access notice: approval by tribunal);
   3. (c) paragraph 27(1) (special reduction);
   4. (d) paragraph 28(4) (power to publish details).
4. (2) In each of the following provisions, for 바카라 사이트渢he individual바카라 사이트� (in each place it occurs) substitute 바카라 사이트渢he person바카라 사이트�바카라 사이트�
   1. (a) paragraph 7(3)(b), (5)(a) and (b) and (6) (file access notice: circumstances in which power is exercisable);
   2. (b) paragraph 28(2)(c) and (5) (power to publish details).
5. (3) In paragraph 28(2)(a), (b) and (f) and (5), for 바카라 사이트渢he individual바카라 사이트檚바카라 사이트� substitute 바카라 사이트渢he person바카라 사이트檚바카라 사이트�.

Part 2

CONSEQUENTIAL AMENDMENTS

Taxes Management Act 1970

15 In section 103ZA of TMA 1970 (disapplication of sections 100 to 103 in the case of certain penalties), in paragraph (g), for 바카라 사이트渄ishonest바카라 사이트� substitute 바카라 사이트渄eliberate바카라 사이트�.

Finance Act 2012

1. 16 In section 223 of FA 2012 (tax agents: dishonest conduct) 바카라 사이트�
   1. (a) in the heading, for 바카라 사이트渄ishonest바카라 사이트� substitute 바카라 사이트渄eliberate바카라 사이트�;
   2. (b) in subsection (1), for 바카라 사이트渄ishonest바카라 사이트� substitute 바카라 사이트渄eliberate바카라 사이트�.

Finance Act 2012

1. 17 In Schedule 34 to FA 2014 (promoters of tax avoidance schemes: threshold conditions), for paragraph 4 and the italic heading before it (dishonest tax agents) substitute 바카라 사이트�

   1. 바카라 사이트淭ax agents

   2. 4 A person meets this condition if the person is given a notification of a penalty under paragraph 26 of Schedule 38 to FA 2012 (tax agents: deliberate conduct) and either 바카라 사이트�
      1. (a) the time period during which a notice of appeal may be given in relation to the penalty has expired, or
      2. (b) an appeal against the penalty has been made and the tribunal has confirmed the decision that a penalty is payable under that paragraph (whether or not the amount of the penalty is varied).바카라 사이트�