Finance Act 1989

162 Failure to make return.U.K.

(1)Section 93 of the Taxes Management Act 1970 (failure to comply with noticeto make return for income tax or capital gains tax) shall be amended asfollows.

(2)In subsection (1) (initial and daily penalties), for paragraphs (a) and(b) there shall be substituted—

(a)to a penalty not exceeding £300, and

(b)if the failure continues after a penalty is imposed under paragraph (a)above, to a further penalty or penalties not exceeding £60 for each dayon which the failure continues after the day on which the penalty underparagraph (a) above was imposed (but excluding any day for which a penaltyunder this paragraph has already been imposed).

(3)The following subsection shall be substituted for subsection (2)—

(2)If a failure by a person to comply with a notice such as is referred toin subsection (1) above continues after the end of the year of assessmentfollowing that during which it was served then, without prejudice to anypenalty under subsection (1) above, he shall be liable to a penalty of anamount not exceeding so much of the tax with which he is charged (whether forone or for more than one year of assessment) in assessments—

(a)based wholly or partly on any income or chargeable gains that ought tohave been included in the return required by the notice, and

(b)made after the end of the year next following the year of assessment inwhich the notice was served,

as is attributable to the income or chargeable gains that ought to havebeen so included.

(4)The following subsection shall be substituted for subsection (5)—

(5)No penalty shall be imposed under subsection (1) above in respect of afailure at any time after the failure has been remedied.

(5)The following subsection shall be substituted for subsection (7)—

(7)If the person on whom a notice is served proves that there was no incomeor chargeable gain to be included in the return, the penalty under thissection shall not exceed £100.

(6)This section shall apply in relation to any failure to comply with anotice served on or after 6th April 1989.