- Latest available (Revised)
- Original (As enacted)
There are currently no known outstanding effects for the Finance Act 2020, Paragraph 5.
Revised legislation carried on this site may not be fully up to date. At the current time any known changes or effects made by subsequent legislation have been applied to the text of the legislation you are viewing by the editorial team. Please see ‘Frequently Asked Questions’ for details regarding the timescales for which new effects are identified and recorded on this site.
5(1)An authorised HMRC officer may give a notice under this sub-paragraph to an individual if it appears to the officer that conditions A to D are met.U.K.
(2)Condition A is that—
(a)a penalty under any of the specified provisions (see sub-paragraph (6)) has been imposed on a company by HMRC, or
(b)proceedings have been commenced before the First-tier Tribunal for a penalty under any of those provisions to be imposed on a company.
(3)Condition B is that—
(a)the company is subject to an insolvency procedure, or
(b)there is a serious possibility of the company becoming subject to an insolvency procedure.
(4)Condition C is that the individual was a director or shadow director of the company, or a participator in it, at the time of any act or omission in respect of which—
(a)the penalty was imposed, or
(b)the proceedings for the penalty were commenced.
(5)Condition D is that there is a serious possibility that some or all of the penalty will not be paid.
(6)The specified provisions are—
(a)section 98C(1) of the TMA 1970 (penalties for breach of certain obligations relating to disclosure of tax avoidance schemes by promoters etc of schemes);
(b)paragraphs 2 and 3 of Schedule 35 to FA 2014 (promoters of tax avoidance schemes: penalties);
(c)paragraph 1 of Schedule 20 to FA 2016 (penalties for enablers of offshore tax evasion or non-compliance);
(d)Part 1 of Schedule 16 to F(No.2)A 2017 (penalties for enablers of defeated tax avoidance);
(e)Part 2 of Schedule 17 to that Act (penalties for breach of certain obligations relating to disclosure of tax avoidance schemes by promoters etc of schemes);
[F1(f)Schedule 13 to FA 2022 (penalties for facilitating avoidance schemes involving non-resident promoters).]
(7)A notice under sub-paragraph (1) must—
(a)specify the company to which the notice relates;
(b)set out the reasons for which it appears to the officer that conditions A to D are met;
(c)state the effect of the notice;
(d)offer the individual a review of the decision to give the notice, and explain the effect of paragraph 11 (right of review);
(e)explain the effect of paragraph 13 (right of appeal).
(8)It must also—
(a)specify the amount of the penalty, if sub-paragraph (2)(a) applies;
(b)if sub-paragraph (2)(b) applies, indicate that the amount will be specified in a further notice.
(9)Once the existence and amount of the penalty have been established in a case where sub-paragraph (2)(b) applies, an authorised HMRC officer must give a further notice specifying that amount.
(10)A notice under sub-paragraph (9) must—
(a)be given to the individual to whom the notice under sub-paragraph (1) was given;
(b)offer the individual a review of the decision to give the notice, and explain the effect of paragraph 11 (right of review);
(c)explain the effect of paragraph 13 (right of appeal).
(11)An individual who is given a notice under sub-paragraph (1) is jointly and severally liable with the company (and with any other individual who is given such a notice) for the amount of the penalty.
(12)The amount of the individual's liability under sub-paragraph (11) is taken to be the amount specified under sub-paragraph (8)(a) or (9). For provision under which the amount so specified may be varied, see—
(a)paragraph 10 (modification etc),
(b)paragraphs 11 and 12 (review), and
(c)paragraphs 13 and 14 (appeal).
Textual Amendments
F1Sch. 13 para. 5(6)(f) inserted (24.2.2022) by Finance Act 2022 (c. 3), s. 91(2)
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.
Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.
Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.
Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.
Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:
This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.
Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:
Click 'View More' or select 'More Resources' tab for additional information including: