Private: Tax Planning Strategy


In the Finance Act 2004, rules were introduced which placed obligations on promoters of various tax arrangements to disclose details of the arrangements to Her Majesty’s Revenue and Customs (HMRC).

The purpose of the DOTAS regime is to require the disclosure of schemes that are new or innovative.

The purpose of the legislation is to identify the details of schemes seeking to avoid tax, and to identify those who use such schemes. HMRC’s aim is to:

  • Identify, as early as possible, schemes that are being used;
  • Challenge avoidance schemes by contesting returns and, where necessary, pursue the matter through the Courts;
  • Produce legislative changes that will close down avoidance schemes where litigation is not appropriate or where the amount of tax at stake is particularly large.

Buckingham Wealth’s Trusts have been in existence for over 20 years, and were already very well known to HMRC before the DOTAS (Disclosure of Tax Avoidance Schemes) regime was introduced. Therefore, the trust planning does not have to be registered under DOTAS.


To reduce the administrative burden on both practitioners and HMRC, those schemes which are the same or substantially the same as arrangements made available before 6 April 2011 are exempt from disclosure. This is known as ‘grandfathering’.