Finance Act 2016, Paragraph 7 is up to date with all changes known to be in force on or before 03 March 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
7(1)If P (who would otherwise be liable to a penalty under paragraph 1)—U.K.
(a)makes a disclosure to HMRC of—
(i)a matter relating to an inaccuracy in a document, a supply of false information or a failure to disclose an under-assessment,
(ii)P's enabling of actions by Q that constituted (or might constitute) a relevant offence or that made (or might make) Q liable to a relevant penalty, or
(iii)any other matter HMRC regard as assisting them in relation to the assessment of P's liability to a penalty under paragraph 1, or
(b)assists HMRC in any investigation leading to Q being charged with a relevant offence or found liable to a relevant penalty,
HMRC must reduce the penalty to one that reflects the quality of the disclosure or assistance.
(2)But the penalty may not be reduced—
(a)in the case of unprompted disclosure or assistance, below whichever is the higher of—
(i)10% of the potential lost revenue, or
(ii)£1,000, or
(b)in the case of prompted disclosure or assistance, below whichever is the higher of—
(i)30% of the potential lost revenue, or
(ii)£3,000.
Commencement Information
I1Sch. 20 para. 7 in force at 1.1.2017 by S.I. 2016/1249, reg. 2
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