23(1)[F1Liability to a penalty under any paragraph of this Schedule does not arise in relation to a failure to make a return if P satisfies HMRC or (on appeal) the First-tier Tribunal or Upper Tribunal that there is a reasonable excuse for the failure.]U.K.
[F1If P satisfies HMRC or (on appeal) the First-tier Tribunal or Upper Tribunal that there is a reasonable excuse for a failure to make a return—
(a)liability to a penalty under any paragraph of this Schedule does not arise in relation to that failure, and
(b)the failure does not count for the purposes of paragraphs 13B(2), 13C, 13G(2) and 13H.]
(2)For the purposes of sub-paragraph (1)—
(a)an insufficiency of funds is not a reasonable excuse, unless attributable to events outside P's control,
(b)where P relies on any other person to do anything, that is not a reasonable excuse unless P took reasonable care to avoid the failure, and
(c)where P had a reasonable excuse for the failure but the excuse has ceased, P is to be treated as having continued to have the excuse if the failure is remedied without unreasonable delay after the excuse ceased.
Textual Amendments
F1Sch. 55 para. 23(1) substituted (12.2.2019 for specified purposes) by Finance (No. 3) Act 2010 (c. 33), s. 26(2), Sch. 10 para. 11; 2019 c. 1, s. 67(2)
Commencement Information
I1Sch. 55 para. 23 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))
I2Sch. 55 para. 23 in force at 6.10.2011 for specified purposes by S.I. 2011/2391, art. 2(b) (with art. 3(1)(2))
I3Sch. 55 para. 23 in force at 17.7.2013 for specified purposes by 2013 c. 29, Sch. 34 para. 7(2)
Sch. 55 para. 23 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)
I4Sch. 55 para. 23 in force at 6.4.2018 for specified purposes by S.I. 2018/468, art. 2(b)
I5Sch. 55 para. 23 in force at 12.2.2019 for specified purposes by 2019 c. 1, Sch. 2 para. 29(3)