On 1 November 2016 HMRC announced that seven leading tax and accountancy bodies in the UK have revised their Professional Conduct in Relation to Tax (PCRT) to emphasize that members of these professional bodies should not encourage tax avoidance activity. This revision to the code of conduct is endorsed by HMRC.
The revised PCRT includes new standards to prevent the creation, promotion or encouragement of tax avoidance schemes and is to come into effect in March 2017. The professional bodies consulted HMRC during the development of the revised code.
This follows a consultation document issued by HMRC in August 2016 setting out proposed new penalties for enablers of tax avoidance including agents and intermediaries. This would include those who develop and advise and assist in developing such schemes or arrangements; Independent Financial Advisers, accountants and others who earn fees in connection with marketing such arrangements; and company formation agents, banks, trustees, accountants, lawyers and others who are intrinsic in or necessary to the implementation of the avoidance.
