DOTAS & IHT
17/06/2011
The Disclosure of Tax Avoidance Schemes (DOTAS) system was introduced for certain taxes in 2006, the statutory framework having been included in the FA 2004. Inheritance Tax (IHT) was not included at the start. The objectives of the disclosure rules are to obtain:
- Early information about tax arrangements and how they work; and
- Information about who has used them
which clearly gives HMRC the opportunity to consider their impact and where appropriate to put forward legislation to close a particular scheme down.
With effect from 6 April 2011 schemes which seek to avoid IHT charges associated with the transfer of property into trust come within the disclosure rules.
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