Legislation – Finance Act 2026

HMRC have notified a lawyer that they intend to publish, or are considering publishing, information identifying the lawyer under a provision listed in subsection (5), and

(b)

the lawyer—

(i)

intends to make representations to the effect that the information should not be published, but

(ii)

will not be able to substantiate some or all of those representations without disclosing the content of privileged communications.

(2)

A lawyer (whether or not the lawyer intending to make the representations) may make a declaration to the effect that—

(a)

the representations are true, and

(b)

the content of privileged communications would be sufficient (whether alone or with other information) to demonstrate this on the balance of probabilities.

(3)

When considering whether the information referred to in subsection (1)(a) may be published, HMRC and, in the context of proceedings, a court or tribunal must treat a declaration made under subsection (2) and provided under a provision listed in subsection (5) as conclusive evidence of the information included in the declaration.

(4)

But subsection (3) does not apply if HMRC, or the court or tribunal, is satisfied that the declaration includes any information that is incorrect.

(5)

The provisions are—

(a)

section 316C of FA 2004 (disclosure of tax avoidance schemes);

(b)

paragraph 36 of Schedule 17 to F(No.2)A 2017 (disclosure of tax avoidance schemes: VAT and other indirect taxes);

(c)

section 86 of FA 2022 (publication of information about tax avoidance schemes).

(6)

For the purposes of this section—

(a)

references to a lawyer are references to a person in respect of whose communications a claim to legal professional privilege, or (in Scotland) to confidentiality of proceedings as between client and professional legal adviser, could be maintained in legal proceedings, and

(b)

a communication is “privileged” if such a claim could be maintained in respect of it.

(7)

In this section—

“HMRC” means—

(a)

where the provision referred to in subsection (1)(a) is section 316C of FA 2004, HMRC as defined for the purposes of that section;

(b)

where the provision referred to in subsection (1)(a) is paragraph 36 of Schedule 17 to F(No.2)A 2017, HMRC as defined for the purposes of that paragraph;

(c)

where the provision referred to in subsection (1)(a) is section 86 of FA 2022—

(i)
in subsection (1)(a), an officer of Revenue and Customs;
(ii)
in subsections (3) and (4), an authorised officer as defined for the purposes of that section;

“tribunal” means the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal.

(8)

The Commissioners for His Majesty’s Revenue and Customs may by regulations make provision about—

(a)

the form of a declaration made under subsection (2),

(b)

the information to be included in a declaration,

(c)

when and how a declaration is to be provided.

(9)

Regulations under this section—

(a)

are to be made by statutory instrument, and

(b)

may make different provision for different purposes.

(10)

A statutory instrument containing regulations made under this section is subject to annulment in pursuance of a resolution of the House of Commons.

210Penalties for an incorrect declaration

(1)

A person who makes a declaration under section 209(2) and carelessly or deliberately includes any incorrect information in the declaration is liable to a penalty not exceeding £10,000.

(2)

Where—

(a)

a person (“A”) provides a declaration under a provision listed in section 209(5) which is made under section 209(2) by another person,

(b)

the declaration includes incorrect information, and

(c)

A knew, or could reasonably have been expected to have known, that the information was incorrect,

A is liable to a penalty not exceeding £10,000.

(3)

For the purposes of subsection (1), incorrect information is included in a declaration carelessly if the person who makes the declaration has failed to take reasonable care to verify the information before including it.

211Penalties: procedure, appeals etc

(1)

Subject to subsection (2), a penalty under section 210 is to be treated as a penalty imposed under the Taxes Acts and, accordingly, is a penalty to be determined and imposed by an authorised officer under section 100(1) of TMA 1970.

(2)

A penalty under section 210 is not required to be paid before the penalty becomes final.

(3)

For the purposes of subsection (2) and sections 212 and 213 a penalty becomes “final” at the time when the period for any appeal or further appeal relating to the penalty expires or, if later, when any appeal or final appeal relating to the penalty is finally determined.

212Publication following an incorrect declaration

(1)

An authorised officer may publish information about a person where—

(a)

the person has incurred a penalty under section 210 in relation to a declaration, and

(b)

the penalty has become final.

(2)

The information that may be published under this section is—

(a)

the person’s name (including any trading name, previous name or pseudonym);

(b)

any address used by the person;

(c)

any other information that the authorised officer considers appropriate for the purposes of identifying the person or their business;

(d)

details of the arrangements to which the declaration relates including the nature of the person’s involvement in those arrangements;

(e)

details of the penalty imposed on the person under section 210.

(3)

The information may be published in any way that the authorised officer considers appropriate.

(4)

Before publishing information under this section, the authorised officer must—

(a)

notify the person that they are considering doing so,

(b)

give the person 30 days from that notification in which to make representations about whether it should be published, and

(c)

have regard to any representations received.

(5)

In this section—

“arrangements” means—

(a)

in relation to a declaration provided under section 316C(6)(b)(ii) of FA 2004, arrangements or proposed arrangements, with those terms having the same meaning as in that section;

(b)

in relation to a declaration provided under paragraph 36(6)(b)(ii) of Schedule 17 to F(No.2)A 2017, arrangements or proposed arrangements, with those terms having the same meaning as in that paragraph;

(c)

in relation to a declaration provided under section 86(5)(b)(ii) of FA 2022, a proposal or arrangements, with those terms having the same meaning as in that section;

“authorised officer” means an officer of Revenue and Customs authorised for the purposes of this section.

213Time limits for publication

(1)

Publication of any information under section 212 on the basis of a penalty incurred by a person may not take place after the end of the period of 12 months beginning with the date on which the penalty became final.

(2)

Subsection (1) is not to be taken to prevent the re-publication, or continued publication, after the end of the period referred to in that subsection, of information published under section 212 before the end of the period.

214Amendments to existing legislation: removal of privilege exemption

(1)

In section 316C of FA 2004 (disclosure of tax avoidance schemes)—

(a)

omit subsection (4A);

(b)

in subsection (6)(b)—

(i)

the words from “make representations” to the end become sub-paragraph (i);

(ii)

after that sub-paragraph insert “, and

(ii)

where section 209(2) of FA 2026 applies, provide a declaration made under that subsection substantiating those representations.”.

(2)

In paragraph 36 of Schedule 17 to F(No.2)A 2017 (disclosure of tax avoidance schemes: VAT and other indirect taxes)—

(a)

omit sub-paragraph (4A);

(b)

in sub-paragraph (6)(b)—

(i)

the words from “make representations” to the end become sub-paragraph (i);

(ii)

after that sub-paragraph insert “, and

(ii)

where section 209(2) of FA 2026 applies, provide a declaration made under that subsection substantiating those representations.”.

(3)

In section 86 of FA 2022 (publication of information about tax avoidance schemes)—

(a)

omit subsection (3)(b) (and the “or” before it);

(b)

in subsection (5)(b)—

(i)

the words from “make representations” to the end become sub-paragraph (i);

(ii)

after that sub-paragraph insert “, and

(ii)

where section 209(2) of FA 2026 applies, provide a declaration made under that subsection substantiating those representations.”;

(c)

in subsection (6), after “representations” insert “and any declaration”.

215Commencement

(1)

Subject to subsection (2), sections 209 to 214 have effect from the day on which this Act is passed.

(2)

The amendments made by section 214 have effect only in relation to conduct occurring on or after the day on which this Act is passed.