Tax avoiders face massive penalties after landmark Montpelier case

clock

Tax avoiders who try to use complicated schemes to cut their bills could face huge penalties after a landmark legal case.

A tax tribunal found that two company directors had been ‘negligent' in joining an avoidance scheme, the Daily Mail reports. The case adds will bolster the efforts of tax authorities, who are staging a wide-ranging clampdown on avoidance and targeting boutique accountancy firms that sell tax plans. In the past, those entering into avoidance schemes have only had to face the risk that the plans did not work and consequently having to pay the tax they had been trying to avoid. This made joining a tax scheme a one-way bet. Many schemes have been struck down by tribunals, with the memb...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Regulation

News editor's view: Simplified advice added to the advice/guidance menu

News editor's view: Simplified advice added to the advice/guidance menu

The news editor's Friday Night Takeaway from 27 March

Isabel Baxter
clock 27 March 2026 • 4 min read
FCA consults on increased fees amid AI plans

FCA consults on increased fees amid AI plans

Regulator proposes to raise minimum and flat fees by 1%

Sophia Panayi
clock 26 March 2026 • 3 min read
FCA looks to drop annual suitability review requirement for ongoing advice services

FCA looks to drop annual suitability review requirement for ongoing advice services

Regulator pushes for ‘periodic’ assessments instead

Isabel Baxter
clock 25 March 2026 • 2 min read