Value Added Tax Act 1994 Schedule 11A paragraph 4

Designation by order of provisions included in or associated with avoidance schemes

Schedule 11A paragraph 4 gives the Treasury the power to designate, by order, types of provisions that are typically found in or associated with tax avoidance schemes, even where those provisions may also appear in legitimate, non-avoidance arrangements.

• The Treasury may designate by order any provision that appears to be included in, or associated with, schemes entered into to obtain a VAT tax advantage.
• A provision can still be designated even if it also features in schemes that are not designed to obtain a tax advantage.
• The term "provision" is broadly defined to include any agreement, transaction, act or course of conduct.
• Designation is forward-looking: it covers provisions that are currently used in avoidance schemes or are likely to be used in the future.