HMRC Research Report: Understanding individuals’ decisions to enter and exit marketed tax avoidance schemes

Marketed tax avoidance schemes are designed to exploit UK tax law and are sold to taxpayers as a way of reducing their liabilities.

This report provides insight into why a small minority of UK taxpayers engage in tax avoidance and what motivates them to enter, remain in and exit these schemes. The research will help HMRC to design communications, policies and interventions which will result in reduced levels of tax avoidance scheme take-up in the future.

Twenty qualitative interviews were conducted with previous avoidance scheme users who have settled their affairs with HMRC. The time frame within which these individuals registered for a marketed tax avoidance scheme ranged from 2003 to 2013.