UK promoters will be made to hand over customer databases under the proposals, allowing HM Revenue and Customs (HMRC) to formally warn clients directly about the deals they have signed up to and to work out how much tax they owe if the scheme fails.
Under the reforms, which will go out to consultation, a promoter who has been penalised for not abiding by the rules will also have to provide extra information to HMRC on all of their schemes, not just the one they were reprimanded for.
Treasury Minister David Gauke will tell the Policy Exchange:
We are building on the work we have already done to make life difficult for those who artificially and aggressively reduce their tax bill.
These schemes damage our ability to fund public services and provide support to those who need it. They harm businesses by distorting competition. They damage public confidence.
And they undermine the actions of the vast majority of taxpayers, who pay more in tax as a consequence of others enjoying a free ride.