Finance Act 2004

307Meaning of “promoter”

(1)For the purposes of this Part a person is a promoter—

(a)in relation to a notifiable proposal, if, in the course of a relevant business—

(i)he is to any extent responsible for the design of the proposed arrangements, or

(ii)he makes the notifiable proposal available for implementation by other persons, and

(b)in relation to notifiable arrangements, if he is by virtue of paragraph (a)(ii) a promoter in relation to a notifiable proposal which is implemented by those arrangements or if, in the course of a relevant business, he is to any extent responsible for—

(i)the design of the arrangements, or

(ii)the organisation or management of the arrangements.

(2)In this section “relevant business” means any trade, profession or business which—

(a)involves the provision to other persons of services relating to taxation, or

(b)is carried on by a bank, as defined by section 840A of the Taxes Act 1988, or by a securities house, as defined by section 209A(4) of that Act.

(3)For the purposes of this section anything done by a company is to be taken to be done in the course of a relevant business if it is done for the purposes of a relevant business falling within subsection (2)(b) carried on by another company which is a member of the same group.

(4)Section 170 of the Taxation of Chargeable Gains Act 1992 (c. 12) has effect for determining for the purposes of subsection (3) whether two companies are members of the same group, but as if in that section—

(a)for each of the references to a 75 per cent subsidiary there were substituted a reference to a 51 per cent subsidiary, and

(b)subsection (3)(b) and subsections (6) to (8) were omitted.

(5)A person is not to be treated as a promoter for the purposes of this Part by reason of anything done in prescribed circumstances.