Finance Act 2008

16(1)Where P becomes liable for a penalty under any of paragraphs 1 to 4 HMRC shall—U.K.

(a)assess the penalty,

(b)notify P, and

(c)state in the notice the period in respect of which the penalty is assessed.

(2)A penalty under any of paragraphs 1 to 4 must be paid before the end of the period of 30 days beginning with the day on which notification of the penalty is issued.

(3)An assessment—

(a)shall be treated for procedural purposes in the same way as an assessment to tax (except in respect of a matter expressly provided for by this Act),

(b)may be enforced as if it were an assessment to tax, and

(c)may be combined with an assessment to tax.

(4)An assessment of a penalty under any of paragraphs 1 to 4 must be made before the end of the period of 12 months beginning with—

(a)the end of the appeal period for the assessment of tax unpaid by reason of the relevant act or failure in respect of which the penalty is imposed, or

(b)if there is no such assessment, the date on which the amount of tax unpaid by reason of the relevant act or failure is ascertained.

(5)In sub-paragraph (4)(a) “appeal period” means the period during which—

(a)an appeal could be brought, or

(b)an appeal that has been brought has not been determined or withdrawn.

(6)Subject to sub-paragraph (4), a supplementary assessment may be made in respect of a penalty if an earlier assessment operated by reference to an underestimate of potential lost revenue.

(7)The references in this paragraph to “an assessment to tax” are, in relation to a penalty under paragraph 2, a demand for recovery.