Finance Act 2009

Reductions for disclosureU.K.

14[F1(A1)In this paragraph, “relevant information” means information which has been withheld by a failure to make a return.]U.K.

(1)Paragraph 15 provides for reductions in the penalty under paragraph 6(3) or (4) [F2where P discloses relevant information that involves a domestic matter] [F3or 11(3) or (4)][F3, 11(3) or (4), 13E(3) or (4) or 13J(3) or (4)] where P discloses [F4relevant information].

[F5(1A)Paragraph 15A provides for reductions in the penalty under paragraph 6(3) or (4) where P discloses relevant information that involves an offshore matter or an offshore transfer.

(1B)Sub-paragraph (2) applies where—

(a)P is liable to a penalty under paragraph 6(3) or (4) and P discloses relevant information that involves a domestic matter, or

(b)P is liable to a penalty under any of the other provisions mentioned in sub-paragraph (1) and P discloses relevant information.]

(2)P discloses relevant information by—

(a)telling HMRC about it,

(b)giving HMRC reasonable help in quantifying any tax unpaid by reason of its having been withheld, and

(c)allowing HMRC access to records for the purpose of checking how much tax is so unpaid.

[F6(2A)Sub-paragraph (2B) applies where P is liable to a penalty under paragraph 6(3) or (4) and P discloses relevant information that involves an offshore matter or an offshore transfer.

(2B)P discloses relevant information by—

(a)telling HMRC about it,

(b)giving HMRC reasonable help in quantifying any tax unpaid by reason of its having been withheld,

(c)allowing HMRC access to records for the purpose of checking how much tax is so unpaid, and

(d)providing HMRC with additional information.

(2C)The Treasury must make regulations setting out what is meant by “additional information” for the purposes of sub-paragraph (2B)(d).

(2D)Regulations under sub-paragraph (2C) are to be made by statutory instrument.

(2E)An instrument containing regulations under sub-paragraph (2C) is subject to annulment in pursuance of a resolution of the House of Commons.]

(3)Disclosure of relevant information—

(a)is “unprompted” if made at a time when P has no reason to believe that HMRC have discovered or are about to discover the relevant information, and

(b)otherwise, is “prompted”.

(4)In relation to disclosure “quality” includes timing, nature and extent.

[F7(5)Paragraph 6A(4) to (5) applies to determine whether relevant information involves an offshore matter, an offshore transfer or a domestic matter for the purposes of this paragraph.]

15(1)[F8Where a person who would otherwise be liable to a 100% penalty has made an unprompted disclosure, HMRC must reduce the 100% to a percentage, not below 30%, which reflects the quality of the disclosure.]U.K.

[F8If a person who would otherwise be liable to a penalty of a percentage shown in column 1 of the Table (a “standard percentage”) has made a disclosure, HMRC must reduce the standard percentage to one that reflects the quality of the disclosure.]

(2)[F8Where a person who would otherwise be liable to a 100% penalty has made a prompted disclosure, HMRC must reduce the 100% to a percentage, not below 50%, which reflects the quality of the disclosure.]

[F8But the standard percentage may not be reduced to a percentage that is below the minimum shown for it—

(a)in the case of a prompted disclosure, in column 2 of the Table, and

(b)in the case of an unprompted disclosure, in column 3 of the Table.]

(3)[F10Where a person who would otherwise be liable to a 70% penalty has made an unprompted disclosure, HMRC must reduce the 70% to a percentage, not below 20%, which reflects the quality of the disclosure.]

(4)[F11Where a person who would otherwise be liable to a 70% penalty has made a prompted disclosure, HMRC must reduce the 70% to a percentage, not below 35%, which reflects the quality of the disclosure.]

(5)But HMRC must not under this paragraph—

(a)reduce a penalty under paragraph 6(3) or (4) below £300, or

(b)reduce a penalty under [F12paragraph 11(3) or (4)][F12sub-paragraph (3) or (4) of any of paragraphs 11, 13E and 13J] below the amount set by [F13paragraph 11(3)(b) or (4)(b) (as the case may be)][F13paragraph (b) of that sub-paragraph].

[F1415A(1)If a person who would otherwise be liable to a penalty of a percentage shown in column 1 of the Table (a “standard percentage”) has made a disclosure, HMRC must reduce the standard percentage to one that reflects the quality of the disclosure.U.K.

(2)But the standard percentage may not be reduced to a percentage that is below the minimum shown for it—

(a)in the case of a prompted disclosure, in column 2 of the Table, and

(b)in the case of an unprompted disclosure, in column 3 of the Table.

(3)But HMRC must not under this paragraph reduce a penalty below £300.]