When under investigation from HMRC, it does not immediately mean they have found you to have been part of a specific tax avoidance scheme, only that you are being checked. There are several tax avoidance schemes that an individual can be held accountable for, relating to several different taxation sections. Share Loss Relief Schemes, Employee Benefit Trusts, Stamp Duty Schemes, Film Partnership Schemes, Pension Schemes, and Inheritance Tax Schemes, all fall under the bracket of tax avoidance as well as subsections associated with the various schemes. HMRC’s anti-avoidance group will attempt to close any loopholes being used to exploit tax avoidance, dependant on which type of scheme is being used.

There are many serious repercussions to any individual found using a tax avoidance scheme. Being found guilty of participating in a tax avoidance scheme can potentially lead to criminal prosecution and having to serve a prison sentence. With the complexities surrounding tax avoidance and the process of the COP 8 investigation, having our professional tax accountant examine your returns or offer advice from the earliest opportunity can be crucial to a successful outcome.