Finance Act 2009

Assessment U.K.

18 (1) Where P is liable for a penalty under any paragraph of this Schedule HMRC must— 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 paragraph of this Schedule 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 of a penalty under any paragraph of this Schedule—

(a) is to 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 Schedule),

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

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

(4) A supplementary assessment may be made in respect of a penalty if an earlier assessment operated by reference to an underestimate of the liability to tax which would have been shown in a return.

[F1 (5) Sub-paragraph (6) applies if—

(a) an assessment in respect of a penalty is based on a liability to tax that would have been shown in a return, and

(b) that liability is found by HMRC to be excessive.

(6) HMRC may by notice to P amend the assessment so that it is based upon the correct amount.

(7) An amendment under sub-paragraph (6)—

(a) does not affect when the penalty must be paid;

(b) may be made after the last day on which the assessment in question could have been made under paragraph 19.]

Textual Amendments

F1 Sch. 55 para. 18(5)-(7) substituted (with effect in accordance with Sch. 50 para. 16(2) of the amending Act) for Sch. 55 para. 18(5) by Finance Act 2013 (c. 29), Sch. 50 para. 7

Modifications etc. (not altering text)

C1 Sch. 55 applied (with modifications) by S.I. 2001/1004, Sch. 4 para. 21G (as inserted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 4) Regulations 2014 (S.I. 2014/2397), regs. 1(1), 3(5))

C2 Sch. 55 paras. 18-23 applied (with modifications) (24.2.2022) by Finance Act 2022 (c. 3), Sch. 2 para. 24(6)

C3 Sch. 55 modified (temp.) (with effect in accordance with Sch. 10 para. 43 of the amending Act) by Finance Act 2022 (c. 3), Sch. 10 para. 26 (as amended (5.1.2023) by S.I. 2022/1321, regs. 1, 2(2)

C4 Sch. 55 para. 18(1) modified (10.12.2021 for specified purposes, 1.4.2022 in so far as not already in force and with effect in accordance with s. 85(1)(b) of the amending Act) by Finance Act 2021 (c. 26), s. 85(1)(a), Sch. 15 para. 8(2)(a); S.I. 2021/1409, regs. 3, 4

C5 Sch. 55 para. 18(1)-(4) applied (6.4.2022) by The Pension (Non-Taxable Payments Following Death) (Real Time Information) Regulations 2021 (S.I. 2021/506), regs. 1, 7(3)

Commencement Information

I1 Sch. 55 para. 18 in force at 1.4.2011 for specified purposes and 6.4.2011 for specified purposes by S.I. 2011/702, art. 2 (with art. 1(2))

I2 Sch. 55 para. 18 in force at 6.10.2011 for specified purposes by S.I. 2011/2391, art. 2(b) (with art. 3(1)(2))

I3 Sch. 55 para. 18 in force at 6.10.2014 for specified purposes and 6.3.2015 for specified purposes by S.I. 2014/2395, art. 2(1)(b)

I4 Sch. 55 para. 18 in force at 1.1.2015 for specified purposes by S.I. 2014/3269, art. 2

I5 Sch. 55 para. 18 in force at 6.4.2018 for specified purposes by S.I. 2018/468, art. 2(b)

I6 Sch. 55 para. 18 in force at 12.2.2019 for specified purposes by 2019 c. 1, Sch. 2 para. 29(3)

I7 Sch. 55 para. 18 in force at 1.4.2022 for specified purposes by S.I. 2021/1409, reg. 2(b)

19 (1) An assessment of a penalty under any paragraph of this Schedule in respect of any amount must be made on or before the later of date A and (where it applies) date B. U.K.

(2) Date A is [F2 —

(a) in the case of an assessment of a penalty under paragraph 6C, the last day of the period of 2 years beginning with the end of the tax month in respect of which the penalty is payable,

(b) in the case of an assessment of a penalty under paragraph 6D, the last day of the period of 2 years beginning with the filing date for the relevant extended failure (as defined in paragraph 6D(10)), and

(c) in any other case,]

the last day of the period of 2 years beginning with the filing date.

(3) Date B is the last day of the period of 12 months beginning with—

(a) the end of the appeal period for the assessment of the liability to tax which would have been shown in the return [F3 or returns (as the case may be in relation to penalties under section 6C or 6D)], or

(b) if there is no such assessment, the date on which that liability is ascertained or it is ascertained that the liability is nil.

(4) In sub-paragraph (3)(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.

(5) Sub-paragraph (1) does not apply to a re-assessment under paragraph 24(2)(b).

Textual Amendments

F2 Words in Sch. 55 para. 19(2) inserted (with effect in accordance with Sch. 50 para. 16(2) of the amending Act) by Finance Act 2013 (c. 29), Sch. 50 para. 8(2)

F3 Words in Sch. 55 para. 19(3)(a) inserted (with effect in accordance with Sch. 50 para. 16(2) of the amending Act) by Finance Act 2013 (c. 29), Sch. 50 para. 8(3)

Modifications etc. (not altering text)

C2 Sch. 55 paras. 18-23 applied (with modifications) (24.2.2022) by Finance Act 2022 (c. 3), Sch. 2 para. 24(6)

C6 Sch. 55 paras. 19-23 applied (6.4.2022) by The Pension (Non-Taxable Payments Following Death) (Real Time Information) Regulations 2021 (S.I. 2021/506), regs. 1, 7(3)

Commencement Information

I8 Sch. 55 para. 19 in force at 1.4.2011 for specified purposes and 6.4.2011 for specified purposes by S.I. 2011/702, art. 2 (with art. 1(2))

I9 Sch. 55 para. 19 in force at 6.10.2011 for specified purposes by S.I. 2011/2391, art. 2(b) (with art. 3(1)(2))

I10 Sch. 55 para. 19 in force at 6.10.2014 for specified purposes and 6.3.2015 for specified purposes by S.I. 2014/2395, art. 2(1)(b)

I11 Sch. 55 para. 19 in force at 6.4.2018 for specified purposes by S.I. 2018/468, art. 2(b)

I12 Sch. 55 para. 19 in force at 12.2.2019 for specified purposes by 2019 c. 1, Sch. 2 para. 29(3)

I13 Sch. 55 para. 19 in force at 1.4.2022 for specified purposes by S.I. 2021/1409, reg. 2(b)