HMRC has new powers to demand information in tax avoidance cases. In September 2026, it published guidance on the new anti-avoidance information notices (AAINs). They come from Part 6 of the Finance Act 2026. Until now, the focus was mostly on the promoters of schemes. But the new notices also reach the people and businesses around them.
What has changed
HMRC can send a notice to anyone it reasonably suspects is connected with promoting or facilitating tax avoidance. It does not need to prove that tax was lost. It also does not need to show that the scheme fails, or that the recipient committed an offence. The test is simpler. The information must be reasonably required to monitor compliance with specified anti-avoidance rules, or to consider action under them. The notices work alongside the existing powers in Schedule 36 of the Finance Act 2008.
Who can receive a notice
The term "connected person" is deliberately broad. It can cover directors, employees, partners, trustees and advisers. It can also cover anyone who made a scheme available, organised it, managed it or benefited from it. In addition, HMRC can approach third parties that hold information about such a person. The same applies to those who can identify an unknown connected person, and to financial institutions.
What HMRC can ask for
- marketing materials and scheme documents;
- implementation manuals and client files;
- fee arrangements and payment flows;
- agreements with introducers;
- system records.
Documents more than six years old generally need extra authorisation from HMRC.
Limits and secrecy
A notice generally cannot require material covered by legal professional privilege. The same goes for journalistic material and certain personal records. Auditors also have specific protection for information obtained in a statutory audit. However, HMRC can order the recipient not to tell anyone about the notice or its contents.
Penalties for non-compliance
- For most notices, the first civil penalty is £5,000.
- If the failure continues, daily penalties of up to £1,000 can follow.
- Concealing or misstating information can lead to higher penalties.
- Deliberate non-compliance or concealment can be a criminal offence, with up to two years in prison.
- A person who keeps withholding information can also face an enhanced penalty. It equals the money or money's worth received in connection with the scheme.
What businesses and advisers should do
- First, set up clear rules for keeping and finding documents on the design, marketing and use of arrangements.
- Then agree an internal route for any notice that arrives.
- Before replying, get legal review, including a check on privilege.
- Once HMRC is involved, control communications and the deletion of documents.
- Finally, check that every answer is accurate and complete.
A notice is a serious statutory demand. So assess its scope quickly and take expert advice before you disclose anything. If you receive one, or want to review your processes in advance, the FBS team can help. This article is for information only and is not legal advice.