PART X U.K. PENALTIES, ETC.

Modifications etc. (not altering text)

C1Part X (ss. 93-107) applied (with modifications) (1.7.1992) by Social Security Contributions and Benefits Act 1992 (c. 4), ss. 16(1)(b), 177(4), Sch. 2

C2Part X (ss 93-107) applied (27.7.1993 with effect in relation to the year 1993-94 and subsequent years of assessment) by 1993 c. 34, s. 122(2)(3)

C3Pt. 10 modified (with effect in accordance with s. 117(4)(5) of the amending Act) by Finance Act 1998 (c. 36), s. 117(1)(b), Sch. 18; S.I. 1998/3173, art. 2

[F193 Failure to make return for income tax and capital gains tax.U.K.

(1)This section applies where—

(a)any person (the taxpayer) has been required by a notice served under or for the purposes of section 8 or 8A of this Act (or either of those sections as extended by section 12 of this Act) to deliver any return, and

(b)he fails to comply with the notice.

(2)The taxpayer shall be liable to a penalty which shall be £100.

(3)If, on an application made to them by an officer of the Board, the General or Special Commissioners so direct, the taxpayer shall be liable to a further penalty or penalties not exceeding £60 for each day on which the failure continues after the day on which he is notified of the direction (but excluding any day for which a penalty under this subsection has already been imposed).

(4)If—

(a)the failure by the taxpayer to comply with the notice continues after the end of the period of six months beginning with the filing date, and

(b)no application is made under subsection (3) above before the end of that period,

the taxpayer shall be liable to a further penalty which shall be £100.

(5)Without prejudice to any penalties under subsections (2) to (4) above, if—

(a)the failure by the taxpayer to comply with the notice continues after the anniversary of the filing date, and

(b)there would have been a liability to tax shown in the return,

the taxpayer shall be liable to a penalty of an amount not exceeding the liability to tax which would have been so shown.

(6)No penalty shall be imposed under subsection (3) above in respect of a failure at any time after the failure has been remedied.

(7)If the taxpayer proves that the liability to tax shown in the return would not have exceeded a particular amount, the penalty under subsection (2) above, together with any penalty under subsection (4) above, shall not exceed that amount.

(8)On an appeal against the determination under section 100 of this Act of a penalty under subsection (2) or (4) above, neither section 50(6) to (8) nor section 100B(2) of this Act shall apply but the Commissioners may—

(a)if it appears to them that, throughout the period of default, the taxpayer had a reasonable excuse for not delivering the return, set the determination aside; or

(b)if it does not so appear to them, confirm the determination.

(9)References in this section to a liability to tax which would have been shown in the return are references to an amount which, if a proper return had been delivered on the filing date, would have been payable by the taxpayer under section 59B of this Act for the year of assessment.

(10)In this section—

Textual Amendments

F1S. 93 substituted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 25; S.I. 1998/3173, art. 2

Modifications etc. (not altering text)

C6S. 93 applied (with modifications) (E.W.) (1.4.2000) by Education (Student Loans) (Repayment) Regulations 2000 (S.I. 2000/944), regs. 1(1), 26(1)(2)

[F293A Failure to make partnership return.U.K.

(1)This section applies where, in the case of a trade, profession or business carried on by two or more persons in partnership—

(a)a partner (the representative partner) has been required by a notice served under or for the purposes of section 12AA(2) or (3) of this Act to deliver any return, and

(b)he [F3or a successor of his] fails to comply with the notice.

(2)Each relevant partner shall be liable to a penalty which shall be £100.

(3)If, on an application made to them by an officer of the Board, the General or Special Commissioners so direct, each relevant partner shall be liable, for each day on which the failure continues after the day on which the representative partner [F4or a successor of his] is notified of the direction (but excluding any day for which a penalty under this subsection has already been imposed), to a further penalty or penalties not exceeding £60.

(4)If—

(a)the failure by the representative partner [F4or a successor of his] to comply with the notice continues after the end of the period of six months beginning with the filing date, and

(b)no application is made under subsection (3) above before the end of that period,

each relevant partner shall be liable to a further penalty which shall be £100.

(5)No penalty shall be imposed under subsection (3) above in respect of a failure at any time after the failure has been remedied.

(6)Where, in respect of the same failure to comply, penalties under subsection (2), (3) or (4) above are determined under section 100 of this Act as regards two or more relevant partners—

(a)no appeal against the determination of any of those penalties shall be brought otherwise than by the representative partner [F5or a successor of his];

(b)any appeal by that partner [F6or successor] shall be a composite appeal against the determination of each of those penalties; and

(c)section 100B(3) of this Act shall apply as if that partner [F6or successor] were the person liable to each of those penalties.

(7)On an appeal against a determination under section 100 of this Act of a penalty under subsection (2) or (4) above, neither section 50(6) to (8) nor section 100B(2) of this Act shall apply but the Commissioners may—

(a)if it appears to them that, throughout the period of default, [F7the person for the time being required to deliver the return (whether the representative partner or a successor of his) had a reasonable excuse for not delivering it], set the determination aside; or

(b)if it does not so appear to them, confirm the determination.

(8)In this section—

Textual Amendments

F2S. 93A inserted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 26; S.I. 1998/3173, art. 2

F3Words in s. 93A(1)(b) inserted (with effect in accordance with s. 121(8) of the amending Act) by Finance Act 1996 (c. 8), s. 123(8)

F4Words in s. 93A(3)(4) inserted (with effect in accordance with s. 121(8) of the amending Act) by Finance Act 1996 (c. 8), s. 123(9)

F5Words in s. 93A(6) inserted (with effect in accordance with s. 121(8) of the amending Act) by Finance Act 1996 (c. 8), s. 123(10)(a)

F6Words in s. 93A(6) inserted (with effect in accordance with s. 121(8) of the amending Act) by Finance Act 1996 (c. 8), s. 123(10)(b)

F7Words in s. 93A(7) substituted (with effect in accordance with s. 121(8) of the amending Act) by Finance Act 1996 (c. 8), s. 123(11)

F894 Failure to make return for corporation tax.U.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F8S. 94 repealed (with effect in accordance with s. 117(4)(5) of the amending Act) by Finance Act 1998 (c. 36), Sch. 19 para. 33, Sch. 27 Pt. 3(28); S.I. 1998/3173, art. 2

95 Incorrect return or accounts for income tax or capital gains tax. U.K.

(1)Where a person fraudulently or negligently—

(a)delivers any incorrect return of a kind mentioned in [F9section 8 or 8A of this Act (or either of those sections] as extended by section 12 of this Act F10... , or

(b)makes any incorrect return, statement, or declaration in connection with any claim for any allowance, deduction or relief in respect of income tax or capital gains tax, or

(c)submits to an inspector or the Board or any Commissioners any incorrect accounts in connection with the ascertainment of his liability to income tax or capital gains tax,

he shall be liable to a penalty not exceeding [F11the amount of the difference specified in subsection (2) below.]

(2)The difference is that between—

(a)the amount of income tax and capital gains tax payable for the relevant years of assessment by the said person (including any amount of income tax deducted at source and not repayable), and

(b)the amount which would have been the amount so payable if the return, statement, declaration or accounts as made or submitted by him had been correct.

(3)The relevant years of assessment for the purposes of this section are, in relation to anything delivered, made or submitted in any year of assessment, that, the next following, and any preceding year of assessment; F12...

Textual Amendments

F9Words in s. 95(1)(a) substituted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 27(1); S.I. 1998/3173, art. 2

F10 Repealed by Finance Act 1988 (c. 39), s. 148and Sch. 14 Part VIIIfor 1990-91and subsequent years.

F11Finance Act 1989 (c. 26), s. 163(1)(a)in relation to returns, statements, declarations or accounts delivered, made or submitted on or after 27 July 1989.

F12Words in s. 95(3) repealed (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 27(2), Sch. 26 Pt. 5(23); S.I. 1998/3173, art. 2

Modifications etc. (not altering text)

C8S. 95 modified by 1988 c. 1, Sch. 6A Pt. II para. 8(4) (as inserted (27.7.1993 with effect for the year 1993-94 and subsequent years of assessment) by 1993 c. 34, s. 73, Sch. 4 paras.7, 8)

C9 See—Income and Corporation Taxes Act 1988 (c. 1), Sch. 14 para. 7(3)(d)—application of s. 95to sums claimed under s. 266(5)(b)to which the claimant was not entitled.Finance Act 1989 (c. 26), s. 57(3)—application of s. 95(3)to medical insurance relief.

C10S. 95: power to apply conferred (1.5.1995) by Finance Act 1995 (c. 4), s. 73(4)(d)

C11S. 95 applied (with modifications) (E.W.) (1.4.2000) by Education (Student Loans) (Repayment) Regulations 2000 (S.I. 2000/944), regs. 1(1), 26(3)

C13 See S.I. 1986/1948, reg. 11(3)and S.I. 1989/469 reg. 9—application of s. 95to individual applications to subscribe to personal equity plans.

C14 See Finance Act 1988 (c. 39), s. 35and Sch. 3 paras. 27and28—married couples.

C15 See S.I. 1986/1948, reg. 23(4)—amounts deducted under S.I. 1986/1948 reg. 23(3)to be treated as amounts of income tax deducted at source and not repayable within the meaning of and for the purposes of s. 95(2)(a)

[F1395A Incorrect partnership return or accounts.U.K.

(1)This section applies where, in the case of a trade, profession or business carried on by two or more persons in partnership—

(a)a partner (the representative partner)—

(i)delivers an [F14incorrect partnership return], or

(ii)makes any incorrect statement or declaration in connection with [F15a [F16partnership return]], or

(iii)submits to an officer of the Board any incorrect accounts in connection with such a return, and

(b)either he does so fraudulently or negligently, or his doing so is attributable to fraudulent or negligent conduct on the part of a relevant partner.

(2)Each relevant partner shall be liable to a penalty not exceeding the difference between—

(a)the amount of income tax or corporation tax payable by him for the relevant period (including any amount of income tax deducted at source and not repayable), and

(b)the amount which would have been the amount so payable if the return, statement, declaration or accounts made or submitted by the representative partner had been correct;

and in determining each such penalty, regard shall be had only to the fraud or negligence, or the fraudulent or negligent conduct, mentioned in subsection (1(b) above.

(3)Where, in respect of the same return, statement, declaration or accounts, penalties under subsection (2) above are determined under section 100 of this Act as regards two or more relevant partners—

(a)no appeal against the determination of any of those penalties shall be brought otherwise than by the representative partner [F17or a successor of his];

(b)any appeal by that partner [F18or successor] shall be a composite appeal against the determination of each of those penalties; and

(c)section 100B(3) of this Act shall apply as if that partner [F18or successor] were the person liable to each of those penalties.

(4)In this section—

Textual Amendments

F13S. 95A inserted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 28; S.I. 1998/3173, art. 2

F14Words in s. 95A(1)(a)(i) substituted (with effect in accordance with s. 88(3) of the amending Act) by Finance Act 2001 (c. 9), Sch. 29 para. 32(a)

F15Words in s. 95A(1)(a)(ii) substituted (with effect in accordance with s. 121(8) of the amending Act) by Finance Act 1996 (c. 8), s. 123(12)

F16Words in s. 95A(1)(a)(ii) substituted (with effect in accordance with s. 88(3) of the amending Act) by Finance Act 2001 (c. 9), Sch. 29 para. 32(b)

F17Words in s. 95A(3) inserted (with effect in accordance with s. 121(8) of the amending Act) by Finance Act 1996 (c. 8), s. 123(13)(a)

F18Words in s. 95A(3) inserted (with effect in accordance with s. 121(8) of the amending Act) by Finance Act 1996 (c. 8), s. 123(13)(b)

F1996Incorrect return or accounts for corporation tax.U.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F19S. 96 repealed (with effect in accordance with s. 117(4)(5) of the amending Act) by Finance Act 1998 (c. 36), Sch. 19 para. 34, Sch. 27 Pt. 3(28); S.I. 1998/3173, art. 2

97 Incorrect return or accounts: supplemental. U.K.

(1)Where any such return, statement, declaration or accounts as are mentioned in [F20section 95] above were made or submitted by any person neither fraudulently nor negligently and it comes to his notice (or, if he has died, to the notice of his personal representatives) that they were incorrect, then, unless the error is remedied without unreasonable delay, the return, statement, declaration or accounts shall be treated for the purposes of those sections as having been negligently made or submitted by him.

(2)For the purposes of [F20section 95] above, any accounts submitted on behalf of any person shall be deemed to have been submitted by him unless he proves that they were submitted without his consent or connivance.

Textual Amendments

F20Words in s. 97(1)(2) substituted (with effect in accordance with s. 117(4)(5) of the amending Act) by Finance Act 1998 (c. 36), Sch. 19 para. 35; S.I. 1998/3173, art. 2

Modifications etc. (not altering text)

C18S. 97(1) applied (with modifications) (6.4.1989) by The Personal Equity Plan Regulations 1989 (S.I. 1989/469), reg. 28(4) (revoked (6.4.2008) by S.I. 2007/2120)

C19S. 97(1) applied (31.7.1997) by Finance (No. 2) Act 1997 (c. 58), Sch. 2 para. 14(4)

[F2197AA Failure to produce documents under section 19A.U.K.

(1)Where a person fails to comply with a notice or requirement under [F22section 19A(2), (2A) or (3)] of this Act [F23or paragraph 6(2) or (3A)(b) of Schedule 1A to this Act,] he shall be liable, subject to subsection (4) below—

(a)to a penalty which shall be £50, and

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

(2)In subsection (1)(b) above “the relevant amount” means—

(a)in the case of a determination of a penalty by an officer of the Board under section 100 of this Act, £30;

(b)in the case of a determination of a penalty by the Commissioners under section 100C of this Act, £150.

(3)An officer of the Board authorised by the Board for the purposes of section 100C of this Act may commence proceedings under that section for any penalty under subsection (1)(b) above, notwithstanding that it is not a penalty to which subsection (1) of section 100 of this Act does not apply by virtue of subsection (2) of that section.

(4)No penalty shall be imposed under subsection (1) above in respect of a failure within that subsection at any time after the failure has been remedied.]

Textual Amendments

F21S. 97AA inserted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 29; S.I. 1998/3173, art. 2

F22Words in s. 97AA(1) substituted (with effect in accordance with Sch. 19 para. 1 of the amending Act) by Finance Act 1996 (c. 8), Sch. 19 para. 3(4)

F23Words in s. 97AA(1) inserted (with effect in accordance with s. 117(4)(5) of the amending Act) by Finance Act 1998 (c. 36), Sch. 19 para. 36; S.I. 1998/3173, art. 2

[F2497ATwo or more tax-geared penalties in respect of the same tax.U.K.

Where two or more penalties—

(a)are incurred by any person and fall to be determined by reference to any income tax or capital gains tax with which he is chargeable for a year of assessment; F25...

F25(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

each penalty after the first shall be so reduced that the aggregate amount of the penalties, so far as determined by reference to any particular part of the tax, does not exceed whichever is or, but for this section, would be the greater or greatest of them, so far as so determined.]

Textual Amendments

F24S. 97A inserted by Finance Act 1988 (c. 39), s. 129 (s. 97A(a) has effect for the year 1988-89 and subsequent years, and s. 97A(b) has effect for accounting periods ending after 31 March 1989).

F25S. 97A(b) and preceding word repealed (with effect in accordance with s. 117(4)(5) of the amending Act) by Finance Act 1998 (c. 36), Sch. 19 para. 37, Sch. 27 Pt. 3(28); S.I. 1998/3173, art. 2

98 Special returns, etc.U.K.

(1)[F26Subject to [F27the provisions of this section and] section 98A below, where] any person—

(a)has been required, by a notice served under or for the purposes of any of the provisions specified in the first column of the Table below, to deliver any return or other document, to furnish any particulars, to produce any document, or to make anything available for inspection, and he fails to comply with the notice, or

(b)fails to furnish any information, give any certificate or produce any document or record in accordance with any of the provisions specified in the second column of the Table below,

he shall be liable, subject to [F26subsections (3) and (4) below—

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

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

(2)[F28Subject to section 98A below, where] a person fraudulently or negligently furnishes, gives, produces or makes any incorrect information, certificate, document, record or declaration of a kind mentioned in any of the provisions specified in either column of the Table below, he shall be liable to a penalty not exceeding [F28£3000].

[F29(3)No penalty shall be imposed under subsection (1) above in respect of a failure within paragraph (a) of that subsection at any time after the failure has been remedied.

(4)No penalty shall be imposed under paragraph (ii) of subsection (1) above in respect of a failure within paragraph (b) of that subsection at any time after the failure has been remedied.]

[F30(4A)If—

(a)a failure to comply with section 350(1) of, or Schedule 16 to, the principal Act arises from a person’s failure to deliver an account, or show the amount, of a payment, and

(b)the payment is within subsection (4B) [F31or (4D)] below,

subsection (1) above shall have effect as if for “£300” there were substituted “£3,000” and as if for “£60” there were substituted “£600”.

(4B)A payment is within this subsection if—

(a)the payment is made by a company [F32or local authority] without an amount representing the income tax on the payment being deducted from the payment,

(b)at the time the payment is made, the company [F33or authority]—

(i)does not believe that [F34one] of the conditions specified in section 349B of the principal Act is satisfied, or

(ii)where it believes that [F34one] of those conditions is satisfied, could not reasonably so believe,

(c)the payment is one from which tax is deductible under section 349 of the principal Act unless the company [F35or authority] reasonably believes that one of those conditions is satisfied, and

(d)[F36none] of those conditions is satisfied at the time the payment is made.

[F37(4C)In subsection (4B) above—

[F38(4D)A payment is within this subsection if—

(a)it is a payment to which section 349(1) of the principal Act (requirement to deduct tax) applies,

(b)it is made by a company which, purporting to rely on section 349E(1) of that Act (power for companies to take account of double taxation treaty relief when paying royalties), deducts less tax from the payment than required by section 349(1) of that Act , and

(c)at the time the payment is made the payee (within the meaning of section 349E of that Act) is not entitled to relief in respect of the payment under any arrangements under section 788 of that Act (double taxation relief) and the company—

(i)does not believe that it is entitled to such relief, or

(ii)if it does so believe, cannot reasonably do so.]

[F39(5)In the case of a failure to comply with section 765A(2)(a) or (b) of the principal Act, subsection (1) above shall have effect as if for “£300” there were substituted “£3000” and as if for “£60” there were substituted “£600”.]

[F40TABLE

1.2.
Part III of this Act, F41. . .In the principal Act—
[F42regulations under section 59E of this Act;]F43. . .
F44. . .[F45regulations under section 42A;]
In the principal Act—F46. . .
F47[section 38(5)];F48. . .
F47[section 42];F48. . .
[F45regulations under section 42A;]section 136(6);
F48. . . [F49section 140G;]
F48. . .F50...
F51. . .F52. . .
regulations under section 202;F51. . .
section 217;regulations under section 202;
section 226(3) and (4);regulations under section 203;
section 234(7)(b), (8) and (9);section 216;
[F53section 246H;]section 226(1) and (2);
section 250(6) and (7);section 234(5), (6) and (7)(a);
section 272(7);section 250(1) to (5);
section 310(4) and (5);section 310(1), (2)[F54, (2A)] and (3);
F55[regulations under section 326C ]section 313(5);
regulations under section 333;F55[Regulations under section 326C ]
[F56regulations under section 333B;]Regulations under section 333;
[F57regulations under section 431E(1) or 441A(3);][F56regulations under section 333B;]
regulations under section 476(1);section 350(1);
F58[regulations under section 477A ]section 375(5);
F59. . . [F60regulations under section 431E(1) or 441A(3);]
section 482(3);[F61regulations under section 444BB;]
regulations under section 482(11); [F61regulations under section 444BD;]
section 483;regulations under section 476(1);
Regulations under section 555(7);F58[regulations under section 477A ;]
section 561(8);F62[section 482(2) ]
section 588(7);regulations under section 482(11);
regulations under section 602; [F63section 552;]
[F64regulations under section 605(1A)(b) to (d);] [F65regulations under section 552ZA(6);]
[F66section 605(3)(b) and (4);]regulations under section 555(7);
regulations under section 612(3); [F67regulations under section 566(1), (2) or (2A);]
regulations under section 639;section 577(4);
[F68regulations under section 651A(1)(b) to (d);]section 588(6);
F69. . .regulations under section 602;
[F70section 660F] [F71regulations under section 605(1A)(a);]
section 700(4);section 605(3)(a);
section 708;regulations under section 612(3);
section 728;regulations under section 639;
F72. . . [F73regulations under section 651A(1)(a);]
section 730(8);F74[section 765A(2)(a);]
F75. . .F76. . .
section 745(1);F77. . .
section 755;F78. . .
F74[section 765A(2)(b) ;]F78. . .
[F79section 767C;]regulations under paragraph 7 of Schedule 14;
section 768(9);Schedule 15, paragraph 14(4);
F76. . . [F80Schedule 15B, paragraph 5(1);]
section 774(5);Schedule 16;
section 778;Schedule 22, paragraph 2.
section 815;Regulations under section [F81151 of the 1992 Act].
F82. . . [F83Sections 43(5) and (6), [F8445B(5) and (6),] [F8545G(4) and (5),] 118 to 120, 145(2) and (3) and 203 of the Capital Allowances Act]
Schedule 5, paragraph 10;Regulations 16 and 17 of the Income Tax (Interest Relief) Regulations 1982.
F86Schedule 9, [paragraph 6];Paragraph 15(3) of Schedule 14 to the Finance Act 1984.
Schedule 15 paragraph 14(5);F87. . .
[F88Schedule 15B, paragraph 5(2);]F89[Section 85(1) and (2) of the Finance Act 1988 ]
F90. . .F91[Regulations under section 57 of the Finance Act 1989.]
Schedule 22, paragraph 4.F92. . .
[F93regulations under paragraph 11B(5) of Schedule 28B][F94Regulations under section 33 of the Finance Act 1991].
Section 32 of the Finance Act 1973.F95. . .
Paragraph 2 of Schedule 15 to the Finance Act 1973.[F96Section 28(2) of the Finance (No.2) Act 1992.]
Regulations under section [F97151 of the 1992 Act]. [F98Paragraphs 2 to 6 of Schedule 5A to the 1992 Act.]
Paragraph [F992(9) of Schedule 1 to the 1992 Act]. [F100regulations under section 73 of the Finance Act 1995;]
F101. . . [F102Section 110ZA of the Social Security Administration Act 1992.]
Section [F10398 of the 1992 Act]. [F104Section 104ZA of the Social Security Administration (Northern Ireland) Act 1992.]
Paragraph 15(1) of Schedule 14 to the Finance Act 1984. [F105Section 86(4) of the Finance Act 1999.]
Paragraph 6(1) of Schedule 22 to the Finance Act 1985. [F106paragraph 65 of Schedule 14 to the Finance Act 2000;]
[F107Section 79(6) of the 1992 Act].[F108paragraph 64 or 65 of Schedule 15 to the Finance Act 2000]
F109[Regulations under section 57 of the Finance Act 1989 ][F110Paragraph 93(2) of Schedule 22 to the Finance Act 2000]
F111[Section 73 of the Finance Act 1989 ][F112Paragraph 129 of Schedule 22 to the Finance Act 2000]
F91[Paragraphs 2 to 4 of Schedule 12 to the Finance Act 1989 ][F113paragraph 6 of Schedule 34 to the Finance Act 2002]
[F114235 of the 1992 Act].[F115paragraph 7 of Schedule 35 to the Finance Act 2002]
[F94Regulations under section 33 of the Finance Act 1991][F116Regulations under Schedule 33 to the Finance Act 2002.]
[F117Paragraph [F11810 of Schedule 5 to the 1992 Act]][F119paragraph 42 of Schedule 16 to the Finance Act 2002]
[F120section 86(12) of the Finance Act 1995;]
[F121paragraph 117 of Schedule 8 to the Finance Act 2000]
[F122paragraph 64 of Schedule 14 to the Finance Act 2000;]
[F123paragraph 66 of Schedule 15 to the Finance Act 2000]
[F124paragraph 10 of Schedule 34 to the Finance Act 2002]
[F125paragraph 11 of Schedule 35 to the Finance Act 2002]
[F116Regulations under Schedule 33 to the Finance Act 2002.]

The references in this Table to regulations under section 602 have effect only for the purpose of giving effect to any provision mentioned in paragraphs (a) and (b) of subsection (2) of that section]

Textual Amendments

F26Finance Act 1989 (c. 26), s. 164(2), (7) in relation to failures beginning, or information etc. furnished, on or after 27 July 1989.

F27Finance Act 1990 (c. 29), s. 68(3)(a) for transactions carried out on or after 1 July 1990.

F28Finance Act 1989 (c. 26), s. 164(3), (7) in relation to failures beginning, or information etc. furnished, on or after 27 July 1989.

F29Finance Act 1989 (c. 26), s. 164(4), (7) in relation to failures beginning, or information etc. furnished, on or after 27 July 1989.

F30S. 98(4A)-(4C) inserted (with effect in accordance with s. 85(4) of the amending Act) by Finance Act 2001 (c. 9), s. 85(2)

F31Words in s. 98(4A)(b) inserted (with application in accordance with s. 96(4) of the amending Act) by Finance Act 2002 (c. 23), s. 96(3)(a)

F32Words in s. 98(4B)(a) inserted (with application in accordance with s. 94(7) of the amending Act) by Finance Act 2002 (c. 23), s. 94(5)(a)

F33Words in s. 98(4B)(b) inserted (with application in accordance with s. 94(7) of the amending Act) by Finance Act 2002 (c. 23), s. 94(5)(b)(i)

F34Word in s. 98(4B)(b) substituted (with application in accordance with s. 94(7) of the amending Act) by Finance Act 2002 (c. 23), s. 94(5)(b)(ii)

F35Words in s. 98(4B)(c) inserted (with application in accordance with s. 94(7) of the amending Act) by Finance Act 2002 (c. 23), s. 94(5)(c)

F36Word in s. 98(4B)(d) substituted (with application in accordance with s. 94(7) of the amending Act) by Finance Act 2002 (c. 23), s. 94(5)(d)

F37S. 98(4C) substituted (with application in accordance with s. 94(7) of the amending Act) by Finance Act 2002 (c. 23), s. 94(6)

F38S. 98(4D) inserted (with application in accordance with s. 96(4) of the amending Act) by Finance Act 2002 (c. 23), s. 96(3)(b)

F39Finance Act 1990 (c. 29), s. 68(3)(b) for transactions carried out on or after 1 July 1990.

F41 Words repealed by Finance Act 1989 (c. 26), ss. 164(5)(a)and 187and Sch. 17 Part VIII in relation to any failure to comply with a notice etc. on or after 27 July 1989.

F42Words in s. 98 inserted (with effect in accordance with s. 89(3) of the amending Act) by Finance Act 1999 (c. 16), s. 89(1)

F43Words in s. 98 repealed (with effect in accordance with s. 38(2)(3) of the amending Act) by Finance Act 1998 (c. 36), Sch. 27 Pt. 3(4)

F44Words in s. 98 repealed (with effect in accordance with reg. 1(1) of the amending S.I.) by The General and Special Commissioners (Amendment of Enactments) Regulations 1994 (S.I. 1994/1813), Sch. 1 para. 13, Sch. 2 Pt. I

F45Words in s. 98 inserted (1.5.1995) by Finance Act 1995 (c. 4), s. 40(2)

F46Words in s. 98 repealed (with effect in accordance with s. 37(3) of the amending Act) by Finance Act 1998 (c. 36), Sch. 27 Pt. 3(3)

F47 Entries transferred to column 1 from column 2 by Finance Act 1989 (c. 26), s. 164(5)(b) in relation to any failure to comply with a notice etc. on or after 27 July 1989.

F48Words in s. 98 repealed (28.7.2000) by Finance Act 2000 (c. 17), Sch. 40 Pt. 2(17)

F49Words in s. 98 inserted (31.7.1998) by Finance Act 1998 (c. 36), s. 52(2)

F50 Repealed by Finance Act 1988 (c. 39), s. 148and Sch. 14 Part VI in relation to acquisitions on or after 26 October 1987.

F51Words in s. 98 repealed (with effect in accordance with s. 61(2)(3) of the amending Act) by Finance Act 1997 (c. 16), Sch. 18 Pt. 6(3) Note 2

F52Words in s. 98 repealed (with application in accordance with s. 58(4) of the amending Act) by Finance Act 1998 (c. 36), Sch. 27 Pt. 3(9)

F53Words in s. 98 inserted (3.5.1994) by Finance Act 1994 (c. 9), Sch. 16 para. 10

F54Word in s. 98 inserted (with effect in accordance with Sch. 15 para. 39(2) of the amending Act) by Finance Act 2001 (c. 9), Sch. 15 para. 39(1)

F56Words in s. 98 inserted (31.7.1998) by Finance Act 1998 (c. 36), s. 77(2)

F57Words in s. 98 Table inserted (with effect in accordance with Sch. 8 paras. 55, 57 of the amending Act) by Finance Act 1995 (c. 4), Sch. 8 para. 50(a)

F58Finance Act 1990 (c. 29), s. 30and Sch. 5 para. 15.

F59 Words repealed by Finance Act 1989 (c. 26), ss. 164(5)(c), 187, Sch. 17 Part VIII in relation to any failure to comply with a notice etc. on or after 27 July 1989.

F60Words in s. 98 Table inserted (with effect in accordance with Sch. 8 paras. 55, 57 of the amending Act) by Finance Act 1995 (c. 4), Sch. 8 para. 50(b)

F61S. 98 entries inserted (29.4.1996) by Finance Act 1996 (c. 8), Sch. 32 para. 2

F62Finance Act 1989 (c. 26), s. 164(5)(c)in relation to any failure to comply with a notice etc. on or after 27 July 1989.

F63Words in s. 98 substituted (with effect in accordance with s. 83(3) of the amending Act) by Finance Act 2001 (c. 9), Sch. 28 para. 20(a)

F64Words in s. 98 inserted (3.5.1994) by Finance Act 1994 (c. 9), s. 105(4)(a)

F65Words in s. 98 substituted (with effect in accordance with s. 83(3) of the amending Act) by Finance Act 2001 (c. 9), Sch. 28 para. 20(b)

F66Words in s. 98 Table substituted (1.1.1996) by Finance Act 1994 (c. 9), s. 105(4)(b)(5); S.I. 1995/3125, art. 2

F67Words in s. 98 substituted (29.4.1996) by Finance Act 1996 (c. 8), s. 178(2)

F68Words in s. 98 inserted (31.7.1998) by Finance Act 1998 (c. 36), s. 96(3)(a)

F70Words in s. 98 Table substituted (with effect in accordance with s. 74(2) of the amending Act) by Finance Act 1995 (c. 4), Sch. 17 para. 23

F71Words in s. 98 inserted (3.5.1994) by Finance Act 1994 (c. 9), s. 105(4)(c)

F72S. 98 entry repealed (with effect in accordance with s. 159(1) of the amending Act) by Finance Act 1996 (c. 8), Sch. 41 Pt. 5(21)

F73Words in s. 98 inserted (31.7.1998) by Finance Act 1998 (c. 36), s. 96(3)(c)

F75Words in s. 98 repealed (with effect in accordance with Sch. 10 para. 16(3) by the amending Act) by Finance Act 1997 (c. 16), Sch. 18 Pt. 6(10)

F76Words in s. 98 repealed (with effect in accordance with s. 108(5) of the amending Act) by Finance Act 1998 (c. 36), Sch. 27 Pt. 3(25)

F77Words in s. 98 repealed (with effect in accordance with Sch. 7 para. 32 of the amending Act) by Finance Act 1996 (c. 8), Sch. 7 para. 29(b), Sch. 41 Pt. 5(2) (with Sch. 7 paras. 33-35)

F78Words in s. 98 repealed (with effect in accordance with Sch. 3 by the amending Act) by Finance Act 1998 (c. 36), Sch. 27 Pt. 3(2)

F79Words in s. 98 inserted (with effect in accordance with s. 115(3) of the amending Act) by Finance Act 1998 (c. 36), s. 115(2)

F80Words in s. 98 Table inserted (with effect in accordance with s. 71(4) of the amending Act) by Finance Act 1995 (c. 4), s. 71(3)(b)

F81Words in s. 98 Table substituted (6.3.1992 with effect as mentioned in s. 289(1)(2) of the substituting Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10 para. 2(10)(b)(i) (with ss. 60, 101(1), 171, 201(3)).

F82Words in s. 98 repealed (with effect in accordance with Sch. 7 para. 32 of the amending Act) by Finance Act 1996 (c. 8), Sch. 7 para. 29(a), Sch. 41 Pt. 5(2) (with Sch. 7 paras. 33-35)

F83Words in s. 98 substituted (with effect in accordance with s. 579(1) of the amending Act) by Capital Allowances Act 2001 (c. 2), Sch. 2 para. 4(2) (with Sch. 3)

F84Words in s. 98 inserted (with effect in accordance with s. 65 of the amending Act) by Finance Act 2001 (c. 9), Sch. 17 para. 5

F85Words in s. 98 inserted (with effect in accordance with s. 63(3) of the amending Act) by Finance Act 2002 (c. 23), Sch. 21 para. 7(2)

F86Finance Act 1990 (c. 29), s. 89and Sch. 14 para. 15 (correction of errors)—deemed to have been made by the Taxes Act 1988.

F87 Repealed by Capital Allowances Act 1990 (c. 1), s. 164(4), Sch. 2

F88Words in s. 98 Table inserted (with effect in accordance with s. 71(4) of the amending Act) by Finance Act 1995 (c. 4), s. 71(3)(a)

F90 Repealed by Finance Act 1989 (c. 26), s. 187and Sch. 17 Part Von and after 27 July 1989.

F91Finance Act 1989 (c. 26), s. 107and Sch. 12 para. 5.

F92Words in s. 98 Table repealed (16.7.1992 with application in relation to claims made after 16.7.1992) by Finance (No. 2) Act 1992 (c. 48), ss. 28, 82, Sch. 18 Pt.VII.

F93Words in s. 98 inserted (with application in accordance with Sch. 18 para. 8(4) of the amending Act) by Finance Act 2000 (c. 17), Sch. 18 para. 8(3)

F94Words in s. 98 Table added (25.7.1991) by Finance Act 1991 (c. 31),, s. 33(2)

F95Words in s. 98 repealed (with effect in accordance with s. 97 of the repealing Act) by Finance Act 1994 (c. 9), Sch. 26 Pt. 5(10)

F96Entry in s. 98 Table inserted (16.7.1992 with application in relation to claims made after 16.7.1992) by Finance (No. 2) Act 1992 (c. 48), s. 28(4)(6).

F97Words in s. 98 Table substituted (6.3.1992 with effect as mentioned in s. 289(1)(2) of the substituting Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10 para. 2(10)(a)(i) (with ss. 60, 101(1), 171, 201(3)).

F98Words in s. 98 inserted (3.5.1994) by Finance Act 1994 (c. 9), s. 97(6)

F99Words in s. 98 Table substituted (6.3.1992 with effect as mentioned in s. 289(1)(2) of the substituting Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10 para. 2(10)(a)(ii) (with ss. 60, 101(1), 171, 201(3)).

F100Words in s. 98 Table inserted (1.5.1995) by Finance Act 1995 (c. 4), s. 73(5)

F101Words in s. 98 repealed (with effect in accordance with s. 579(1) of the amending Act) by Capital Allowances Act 2001 (c. 2), Sch. 2 para. 4(1), Sch. 4 (with Sch. 3)

F102Words in s. 98 inserted (1.4.1999) by Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2), s. 28(3), Sch. 5 para. 1; S.I. 1999/527, art. 2(b), Sch. 2 (with arts. 3-6)

F103Words in s. 98 Table substituted (6.3.1992 with effect as mentioned in s. 289(1)(2) of the substituting Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10 para. 2(10)(a)(iii) (with ss. 60, 101(1), 171, 201(3)).

F105Words in s. 98 inserted (27.7.1999) by Finance Act 1999 (c. 16), s. 86(9)

F106Words in s. 98 inserted (28.7.2000) by Finance Act 2000 (c. 17), Sch. 14 para. 65(3)

F107Words in s. 98 Table substituted (6.3.1992 with effect as mentioned in s. 289(1)(2) of the substituting Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10 para. 2(10(a)(iv) (with ss. 60, 101(1), 171, 201(3)).

F108Words in s. 98 inserted (with effect in accordance with s. 63(4) of the amending Act) by Finance Act 2000 (c. 17), Sch. 16 para. 1(2)

F110Words in s. 98 inserted (28.7.2000) by Finance Act 2000 (c. 17), Sch. 22 para. 93(4)

F112Words in s. 98 inserted (28.7.2000) by Finance Act 2000 (c. 17), Sch. 22 para. 129(3)

F113Words in s. 98 inserted (retrospective and with application in accordance with s. 111(1)(2)(7)-(9) of the amending Act) by Finance Act 2002 (c. 23), s. 111(10), Sch. 34 para. 6(3)

F114Words in s. 98 Table substituted (6.3.1992 with effect as mentioned in s. 289(1)(2) of the substituting Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10 para. 2(10)(v) (with ss. 60, 101(1), 171, 201(3)).

F115Words in s. 98 inserted (retrospective and with application in accordance with s. 113(1)(2)(6)-(8) of the amending Act) by Finance Act 2002 (c. 23), s. 113(9), Sch. 35 para. 7(3)

F116Words in s. 98 inserted (24.7.2002) by Finance Act 2002 (c. 23), Sch. 33 para. 15

F117Words in s. 98 Table inserted (25.7.1991) by Finance Act 1991 (c. 31), s. 89(1), Sch. 16 para. 17

F118Words in s. 98 Table substituted (6.3.1992 with effect as mentioned in s. 289(1)(2) of the substituting Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10 para. 2(10)(a)(vi) (with ss. 60, 101(1), 171, 201(3)).

F119Words in s. 98 inserted (23.1.2003) by Finance Act 2002 (c. 23), s. 57(3), Sch. 17 para. 1; S.I. 2003/88, art. 2

F120Words in s. 98 Table inserted (1.5.1995) by virtue of Finance Act 1995 (c. 4), s. 86(12)

F121Words in s. 98 inserted (28.7.2000) by Finance Act 2000 (c. 17), Sch. 17 para. 117(4)

F122Words in s. 98 inserted (28.7.2000) by Finance Act 2000 (c. 17), Sch. 14 para. 64(3)

F123Words in s. 98 inserted (with effect in accordance with s. 63(4) of the amending Act) by Finance Act 2000 (c. 17), Sch. 16 para. 1(3)

F124Words in s. 98 inserted (retrospective and with application in accordance with s. 111(1)(2)(7)-(9) of the amending Act) by Finance Act 2002 (c. 23), s. 111(10), Sch. 34 para. 10(3)

F125Words in s. 98 inserted (retrospective and with application in accordance with s. 113(1)(2)(6)-(8) of the amending Act) by Finance Act 2002 (c. 23), s. 113(9), Sch. 35 para. 11(3)

Modifications etc. (not altering text)

C21S. 98 applied (with modifications) by Oil Taxation Act 1975 (c. 22), s. 1, Sch. 2 para. 1(1).

S. 98 applied by Finance Act 1981 (c. 35), s. 134, Sch. 17 para. 18 (special tax on banking deposits).

C23S. 98 amended (27.7.1993) by 1993 c. 34, s. 187(8)

C25S. 98 applied (with modifications) (1.7.1997) by The Manufactured Dividends (Tax) Regulations 1997 (S.I. 1997/993), regs. 1, 8(5)(6)

C26S. 98 modified by Social Security Administration Act 1992 (c. 5), s. 111(4) (as inserted (1.4.1999) by Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2), s. 28(3), Sch. 5 para. 4(3); S.I. 1999/527, art. 2(b), Sch. 2 (with arts. 3-6))

C28S. 98 applied (with modifications) (E.W.) (1.4.2000) by Education (Student Loans) (Repayment) Regulations 2000 (S.I. 2000/944), regs. 1(1), 7(1), 43(6)

C29S. 98(1) modified (31.7.1997) by Finance (No. 2) Act 1997 (c. 58), Sch. 2 para. 13(3)

C30S. 98(2) modified (31.7.1997) by Finance (No. 2) Act 1997 (c. 58), Sch. 2 para. 14(3)(a)

[F12698ASpecial penalties in the case of certain returns.U.K.

(1)Regulations under section 203(2) (PAYE) or 566(1) (sub-contractors) of the principal Act may provide that this section shall apply in relation to any specified provision of the regulations.

(2)Where this section applies in relation to a provision of regulations, any person who fails to make a return in accordance with the provision shall be liable—

(a)to a penalty or penalties of the relevant monthly amount for each month (or part of a month) during which the failure continues, but excluding any month after the twelfth or for which a penalty under this paragraph has already been imposed, and

(b)if the failure continues beyond twelve months, without prejudice to any penalty under paragraph (a) above, to a penalty not exceeding so much of the amount payable by him in accordance with the regulations for the year of assessment to which the return relates as remained unpaid at the end of 19th April after the end of that year.

(3)For the purposes of subsection (2)(a) above, the relevant monthly amount in the case of a failure to make a return—

(a)where the number of persons in respect of whom particulars should be included in the return is fifty or less, is £100, and

(b)where the number is greater than fifty, is £100 for each fifty such persons and an additional £100 where that number is not a multiple of fifty.

(4)Where this section applies in relation to a provision of regulations, any person who fraudulently or negligently makes an incorrect return of a kind mentioned in the provision shall be liable to a penalty not exceeding the difference between—

(a)the amount payable by him in accordance with the regulations for the year of assessment to which the return relates, and

(b)the amount which would have been so payable if the return had been correct.]

Textual Amendments

Modifications etc. (not altering text)

C31S. 98A power to apply conferred (E.W.S.) (1.7.1992) by Social Security Contributions and Benefits Act 1992 (c. 4), ss. 1(4), 177(4), Sch. 1 para. 7 (as amended (4.3.1999 for specified purposes, 6.4.1999 in so far as not already in force) by Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2), s. 28(3), Sch. 7 para. 10; S.I. 1999/527, art. 2(a)(c), Schs. 1, 3 (with art. 3-6))

C33S. 98A applied (6.4.1993) by The Income Tax (Sub-contractors in the Construction Industry) Regulations 1993 (S.I. 1993/743), reg. 11(11) (revoked (6.4.2007) by S.I. 2005/2045, Sch. 2)

C34S. 98A applied (6.4.1993) by The Income Tax (Employments) Regulations 1993 (S.I. 1993/744), reg. 43(12) (revoked (6.4.2004) by S.I. 2003/2682, Sch. 2)

C35S. 98A applied (6.4.1993) by The Income Tax (Employments) Regulations 1993 (S.I. 1993/744), reg. 104(16) (revoked (6.4.2004) by S.I. 2003/2682, Sch. 2)

[F12798B European Economic Interest Groupings.U.K.

(1)In this section “grouping” means a European Economic Interest Grouping formed in pursuance of Council Regulation (EEC) No. 2137/85 of 25th July 1985, whether registered in Great Britain, in Northern Ireland or elsewhere.

[F128(2)Subsections (2A) to (4) below apply where a grouping or member of a grouping required by a notice given under section 12A of this Act to deliver a return or other document fails to comply with the notice.

(2A)The grouping or member shall be liable to a penalty not exceeding £300 multiplied by the number of members of the grouping at the time of the failure to comply.

(2B)If, on an application made to them by an officer of the Board, the General or Special Commissioners so direct, the grouping or member shall be liable, for each day on which the failure continues after the day on which the grouping or member is notified of the direction (but excluding any day for which a penalty under this subsection has already been imposed), to a further penalty or penalties not exceeding £60 multiplied by the number of members of the grouping at the end of that day.]

(3)No penalty shall be imposed under [F129subsection (2A) or (2B)] above in respect of a failure at any time after the failure has been remedied.

(4)If a grouping to which, or member to whom, a notice is given proves that there was no income or chargeable gain to be included in the return, the penalty under [F130subsections (2A) and (2B)] above shall not exceed £100.

(5)Where a grouping or member fraudulently or negligently delivers an incorrect return, accounts or statement, or makes an incorrect declaration in a return delivered, under section 12A above, the grouping or member shall be liable to a penalty not exceeding £3000 multiplied by the number of members of the grouping at the time of delivery.]

Textual Amendments

F127S. 98B inserted (on and after 1 July 1989) by Finance Act 1990 (c. 29), s. 69, Sch. 11 para. 3(1)

F128S. 98B(2)(2A)(2B) substituted for s. 98B(2) (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 30(1); S.I. 1998/3173, art. 2

F129Words in s. 98B(3) substituted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 30(2); S.I. 1998/3173, art. 2

F130Words in s. 98B(4) substituted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 30(3); S.I. 1998/3173, art. 2

[F13199Assisting in preparation of incorrect return, etc.U.K.

Any person who assists in or induces the preparation or delivery of any information, return, accounts or other document which—

(a)he knows will be, or is or are likely to be, used for any purpose of tax, and

(b)he knows to be incorrect,

shall be liable to a penalty not exceeding £3,000.]

Textual Amendments

F131S. 99 substituted by Finance Act 1989 (c. 26), s. 166 in relation to assistance and inducements occurring on or after 27 July 1989.

Modifications etc. (not altering text)

C37 S. 99 applied (with modifications) by the Oil Taxation Act 1975 (c. 22), s. 1, Sch. 2 para. 1(1)

S. 99 applied (with modifications) by Finance Act 1981 (c. 35), s. 134, Sch. 17 para. 18 (special tax on banking deposits).

[F13299ACertificates of non-liability to income tax.U.K.

If a person who gives a certificate of non-liability to income tax in pursuance of regulations under section 477A of the principal Act (building societies) or section 480B of that Act (deposit-takers)—

(a)gives the certificate fraudulently or negligently, or

(b)fails to comply with any undertaking contained in the certificate in pursuance of the regulations,

he shall be liable to a penalty not exceeding £3,000.]

Textual Amendments

F132S. 99A inserted (25.7.1991) by Finance Act 1991 (c. 31),, s. 82

[F133100Determination of penalties by officer of the Board.U.K.

(1)Subject to subsection (2) below and except where proceedings for a penalty have been instituted under section 100D below F134... , an officer of the Board authorised by the Board for the purposes of this section may make a determination imposing a penalty under any provision of the Taxes Acts and setting it at such amount as, in his opinion, is correct or appropriate.

(2)Subsection (1) above does not apply where the penalty is a penalty under—

(a)section 93(1) above as it has effect before the amendments made by section 162 of the Finance Act 1989 or section 93(1)(a) above as it has effect after those amendments,

(b)section 94(1) above as it has effect before the substitution made by section 83 of the Finance (No. 2) Act 1987,

(c)section 98(1) above as it has effect before the amendments made by section 164 of the Finance Act 1989 or section 98(1)(i) above as it has effect after those amendments, or

(d)paragraph (a)(i) of section 98A(2) above as it has effect by virtue of section 165(2) of the Finance Act 1989, [F135or

(e)section 98B(2)(a) above.]

(3)Notice of a determination of a penalty under this section shall be served on the person liable to the penalty and shall state the date on which it is issued and the time within such an appeal against the determination may be made.

(4)After the notice of a determination under this section has been served the determination shall not be altered except in accordance with this section or on appeal.

(5)If it is discovered by an officer of the Board authorised by the Board for the purposes of this section that the amount of a penalty determined under this section is or has become insufficient the officer may make a determination in a further amount so that the penalty is set at the amount which, in his opinion, is correct or appropriate.

(6)In any case where—

(a)a determination under this section is of a penalty under [F136section 93(2), (4) or (5) of this Act or] [F137paragraph 18(2) of Schedule 18 to the Finance Act 1998], and

(b)after the determination has been made it is discovered by an officer of the Board authorised by the Board for the purposes of this section that the amount which was taken into account as the relevant amount of tax is or has become excessive,

the determination shall be revised so that the penalty is set at the amount which is correct; and, where more than the correct amount has already been paid, the appropriate amount shall be repaid.]

Textual Amendments

F133Ss. 100-100D substituted for s. 100 by Finance Act 1989 (c. 26), s. 167

F134Words in s. 100(1) repealed (with effect in accordance with reg. 1(1) of the amending S.I.) by The General and Special Commissioners (Amendment of Enactments) Regulations 1994 (S.I. 1994/1813), Sch. 1 para. 14, Sch. 2 Pt. I

F136Words in s. 100(6)(a) inserted (with application in accordance with s. 91(2) of the amending Act) by Finance Act 2001 (c. 9), s. 91(1)

F137Words in s. 100(6)(a) substituted (with effect in accordance with s. 117(4)(5) of the amending Act) by Finance Act 1998 (c. 36), Sch. 19 para. 38; S.I. 1998/3173, art. 2

Modifications etc. (not altering text)

C42S. 100 applied (with modifications) (31.7.1997) by Finance (No. 2) Act 1997 (c. 58), Sch. 2 para. 17(4)-(6)

C45S. 100 modified (N.I.) by Social Security (Contributions) Regulations (Northern Ireland) 1979 (S.R. 1979/186), reg. 47L(1) (as inserted (with effect in accordance with reg. 1(3) of the amending S.I.) by S.I. 2000/2208, regs. 1(1), 20)

C46S. 100 applied (with modifications) (6.4.2001) by The Social Security (Contributions) Regulations 2001 (S.I. 2001/1004), regs. 1(1), 82(1)

[F133100A Provisions supplementary to section 100.U.K.

(1)Where a person who has incurred a penalty has died, a determination under section 100 above which could have been made in relation to him may be made in relation to his personal representatives, and any penalty imposed on personal representatives by virtue of this subsection shall be a debt due from and payable out of his estate.

(2)A penalty determined under section 100 above shall be due and payble at the end of the period of thirty days beginning with the date of the issue of the notice of the determination.

(3)A penalty determined under section 100 above shall for all purposes be treated as if it were charged in an assessment and due and payable.]

Textual Amendments

F133Ss. 100-100D substituted for s. 100 by Finance Act 1989 (c. 26), s. 167

Modifications etc. (not altering text)

C47Ss. 100-100D power to apply conferred (N.I.) (1.7.1992) by Social Security Contributions and Benefits (Northern Ireland) Act 1992, ss. 1(4), 173(4), Sch. 1, para. 7(2)(b)(9)-(12)

Ss. 100-100D power to apply conferred (E.W.S.) (1.7.1992) by Social Security Contributions and Benefits Act 1992 (c. 4), ss. 1(4), 177(4), Sch. 1, para. 7(2)(b)(9)-(12)

C50S. 100A(2)(3) applied (with modifications) (31.7.1997) by Finance (No. 2) Act 1997 (c. 58), Sch. 2 para. 17(4)-(6)

[F133100B Appeals against penalty determinations.U.K.

(1)An appeal may be brought against the determination of a penalty under section 100 above and, subject to [F138sections 93, 93A and 95A of this Act] [F139and] the following provisions of this section, the provisions of this Act relating to appeals shall have effect in relation to an appeal against such a determination as they have effect in relation to an appeal against an assessment to tax.

(2)[F140Subject to sections 93(8) and 93A(7) of this Act] on an appeal against the determination of a penalty under section 100 above section 50(6) to (8) of this Act shall not apply but—

(a)in the case of a penalty which is required to be of a particular amount, the Commissioners may—

(i)if it appears to them that no penalty has been incurred, set the determination aside,

(ii)if the amount determined appears to them to be correct, confirm the determination, or

(iii)if the amount determined appears to them to be incorrect, increase or reduce it to the correct amount.

(b)in the case of any other penalty, the Commissioners may—

(i)if it appears to them that no penalty has been incurred, set the determination aside,

(ii)if the amount determined appears to them to be appropriate, confirm the determination,

(iii)if the amount determined appears to them to be excessive, reduce it to such other amount (including nil) as they consider appropriate, or

(iv)if the amount determined appears to them to be insufficient, increase it to such amount not exceeding the permitted maximum as they consider appropriate.

(3)Without prejudice to [F141any right to have a case stated under regulation 22 of the General Commissioners Regulations or any right of appeal under section 56A] of this Act, an appeal from a decision of the Commissioners against the amount of a penalty which has been determined under section 100 above or this section shall lie, at the instance of the person liable to the penalty, to the High Court or, in Scotland to the Court of Session as the Court of Exchequer in Scotland; and on that appeal the court shall have the like jurisdiction as is conferred on the Commissioners by virtue of this section.]

Textual Amendments

F133Ss. 100-100D substituted for s. 100 by Finance Act 1989 (c. 26), s. 167

F138Words in s. 100B(1) inserted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 31(1); S.I. 1998/3173, art. 2

F139Word in s. 100B(1) inserted (with effect in accordance with s. 103(7) of the amending Act) by Finance Act 1995 (c. 4), s. 115(7)

F140Words in s. 100B(2) inserted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 31(2); S.I. 1998/3173, art. 2

F141Words in s. 100B(3) substituted (with effect in accordance with reg. 1(1) of the amending S.I.) by The General and Special Commissioners (Amendment of Enactments) Regulations 1994 (S.I. 1994/1813), Sch. 1 para. 15

Modifications etc. (not altering text)

C53S. 100B(3) applied (31.7.1997) by Finance (No. 2) Act 1997 (c. 58), Sch. 2 para. 17(10)

[F133100C Penalty proceedings before Commissioners.U.K.

(1)An officer of the Board authorised by the Board for the purposes of this section may commence proceedings before the General or Special Commissioners for any penalty to which subsection (1) of section 100 above does not apply by virtue of subsection (2) of that section.

(2)Proceedings under this section shall be by way of information in writing, made to the Commissioners, and upon summons issued by them to the defendant (or defender) to appear before them at a time and place stated in the summons; and they shall hear and decide each case in a summary way.

(3)Any penalty determined by the Commissioners in proceedings under this section shall for all purposes be treated as if it were tax charged in an assessment and due and payable.

(4)An appeal against the determination of a penalty in proceedings under this section shall lie to the High Court or, in Scotland, the Court of Session as the Court of Exchequer in Scotland—

(a)by any party on a question of law, and

(b)by the defendant (or, in Scotland, the defender) against the amount of the penalty.

(5)On any such appeal the court may—

(a)if it appears that no penalty has been incurred, set the determination aside,

(b)if the amount determined appears to be appropriate, confirm the determination,

(c)if the amount determined appears to be excessive, reduce it to such other amount (including nil) as the court considers appropriate, or

(d)if the amount determined appears to be insufficient, increase it to such amount not exceeding the permitted maximum as the court considers appropriate.]

Textual Amendments

F133Ss. 100-100D substituted for s. 100 by Finance Act 1989 (c. 26), s. 167

Modifications etc. (not altering text)

C54 S. 100C applied (with modifications) by the Oil Taxation Act 1975 (c. 22), s. 1, Sch. 2 para. 1(1)

C56S. 100C applied (with modifications) (31.7.1997) by Finance (No. 2) Act 1997 (c. 58), Sch. 2 para. 17(4)-(6)

[F133100D Penalty proceedings before court.U.K.

(1)Where in the opinion of the Board the liability of any person for a penalty arises by reason of the fraud of that person or any other person, proceedings for the penalty may be instituted before the High Court or, in Scotland, the Court of Session as the Court of Exchequer in Scotland.

(2)Proceedings under this section which are not instituted (in England, Wales or Northern Ireland) under the Crown Proceedings Act 1947 by and in the name of the Board as an authorised department for the purposes of that Act shall be instituted—

(a)in England and Wales, in the name of the Attorney General,

(b)in Scotland, in the name of the Lord Advocate, and

(c)in Northern Ireland, in the name of the Attorney General for Northern Ireland.

(3)Any proceedings under this section instituted in England and Wales shall be deemed to be civil proceedings by the Crown within the meaning of Part II of the Crown Proceedings Act 1947 and any such proceedings instituted in Northern Ireland shall be deemed to be civil proceedings within the meaning of that Part of that Act as for the time being in force in Northern Ireland.

(4)If in proceedings under this section the court does not find that fraud is proved but consider that the person concerned is nevertheless liable to a penalty, the court may determine a penalty notwithstanding that, but for the opinion of the Board as to fraud, the penalty would not have been a matter for the court.]

Textual Amendments

F133Ss. 100-100D substituted for s. 100 by Finance Act 1989 (c. 26), s. 167

Modifications etc. (not altering text)

C59S. 100D applied (with modifications) (31.7.1997) by Finance (No. 2) Act 1997 (c. 58), Sch. 2 para. 17(4)-(6)

C61S. 100D modified (N.I.) by Social Security (Contributions) Regulations (Northern Ireland) 1979 (S.R. 1979/186), reg. 47L(2) (as inserted (with effect in accordance with reg. 1(3) of the amending S.I.) by S.I. 2000/2208, regs. 1(1), 20)

C62S. 100D applied (with modifications) (6.4.2001) by The Social Security (Contributions) Regulations 2001 (S.I. 2001/1004), regs. 1(1), 82(2)

C63S. 100D(2) functions transferred (20.5.1999 immediately before the time by reference to which the Lord Advocate's retained functions are determined for the purposes of 1998 c. 46, s. 52(6)(a)) by The Transfer of Functions (Lord Advocate and Advocate General for Scotland) Order 1999 (S.I. 1999/679), arts. 1(2), 2, Sch.; S.I. 1998/3178, art. 2, Sch. 4

[F142101 Evidence for purposes of proceedings relating to penalties.U.K.

An assessment which can no longer be varied by any Commissioners on appeal or by order of any court is sufficient evidence, for the purposes of—

(a)the preceding provisions of this Part, and

(b)the provisions of Schedule 18 to the Finance Act 1998 relating to penalties,

that the amounts in respect of which tax is charged in the assessment arose or were received as stated in the assessment.]

Textual Amendments

F142S. 101 substituted (with effect in accordance with s. 117(4)(5) of the amending Act) by Finance Act 1998 (c. 36), Sch. 19 para. 39; S.I. 1998/3173, art. 2

Modifications etc. (not altering text)

C64 S. 101 applied (with modifications) by the Oil Taxation Act 1975 (c. 22), s. 1, Sch. 2 para. 1(1)

102 Mitigation of penalties.U.K.

The Board may in their discretion mitigate any penalty, or stay or compound any proceedings for [F143a penalty], and may also, after judgment, further mitigate or entirely remit the penalty.

Textual Amendments

Modifications etc. (not altering text)

C65Ss. 102-104 power to apply conferred (E.W.S.) (1.7.1992) by Social Security Contributions and Benefits Act 1992 (c. 4), ss. 1(4), 177(4), Sch. 1 para. 7(2)(b)(9)-(12)

C67 See Finance Act 1966 s.27, Sch.6 para.23(7)(b) and S.I. 1966/1191, reg. 4—application of this section in relation to penalties under para.23 (transitional relief to companies with overseas trading income).

C68S. 102 applied (with modifications) (31.7.1997) by Finance (No. 2) Act 1997 (c. 58), Sch. 2 para. 17(4)-(6)

[F144103Time limits for penalties.U.K.

(1)Subject to subsection (2) below, where the amount of a penalty is to be ascertained by reference to tax payable by a person for any period, the penalty may be determined by an officer of the Board, or proceedings for the penalty may be commenced before the Commissioners or a Court—

(a)at any time within six years after the date on which the penalty was incurred, or

(b)at any later time within three years after the final determination of the amount of tax by reference to which the amount of the penalty is to be ascertained.

(2)Where the tax was payable by a person who has died, and the determination would be made in relation to his personal representatives, section (1)(b) above does not apply if the tax was charged in an assessment made later than six years after [F145the 31st January next following the chargeable period] for which it was charged.

(3)A penalty under section 99 of this Act may be determined by an officer of the Board, or proceedings for such a penalty may be commenced before a court, at any time within twenty years after the date on which the penalty was incurred.

(4)A penalty to which neither subsection (1) nor subsection (3) above applies may be so determined, or proceedings for such a penalty may be commenced before the Commissioners or a court, at any time within six years after the date on which the penalty was incurred or began to be incurred.]

Textual Amendments

F144S. 103 substituted by Finance Act 1989 (c. 26), s. 169.

F145Words in s. 103(2) substituted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 32; S.I. 1998/3173, art. 2

Modifications etc. (not altering text)

C71 S. 103(1)(4) applied (with modifications) by the Oil Taxation Act 1975 (c. 22), s. 1, Sch. 2 para. 1(1)

C73S. 103 applied (with modifications) (31.7.1997) by Finance (No. 2) Act 1997 (c. 58), Sch. 2 para. 17(4)-(6)

[F146103A Interest on penalties.U.K.

A penalty under any of the provisions of [F147Part II, IV or VA] or this Part of this Act[F148, or Schedule 18 to the Finance Act 1998,] shall carry interest at the rate applicable under section 178 of the Finance Act 1989 from the date on which it becomes due and payable until payment.]

Textual Amendments

F146S. 103A inserted (with effect in accordance with s. 199(2)(3) of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 33; S.I. 1998/3173, art. 2

F147Words in s. 103A substituted (with effect in accordance with s. 103(7) of the amending Act) by Finance Act 1995 (c. 4), s. 115(8)

F148Words in s. 103A inserted (with effect in accordance with s. 117(4)(5) of the amending Act) by Finance Act 1998 (c. 36), Sch. 19 para. 40; S.I. 1998/3173, art. 2

Modifications etc. (not altering text)

C65Ss. 102-104 power to apply conferred (E.W.S.) (1.7.1992) by Social Security Contributions and Benefits Act 1992 (c. 4), ss. 1(4), 177(4), Sch. 1 para. 7(2)(b)(9)-(12)

C76S. 103A applied (with modifications) (31.7.1997) by Finance (No. 2) Act 1997 (c. 58), Sch. 2 para. 17(4)-(6)

C77S. 103A applied (with modifications) (with effect in accordance with reg. 1(2) of the amending S.I.) by The Stamp Duty (Collection and Recovery of Penalties) Regulations 1999 (S.I. 1999/2537), regs. 1(1), 3(1), Sch. Pt. I

104 Saving for criminal proceedings. U.K.

The provisions of the Taxes Acts shall not, save so far as is otherwise provided, affect any criminal proceedings for any misdemeanour.

Modifications etc. (not altering text)

C65Ss. 102-104 power to apply conferred (E.W.S.) (1.7.1992) by Social Security Contributions and Benefits Act 1992 (c. 4), ss. 1(4), 177(4), Sch. 1 para. 7(2)(b)(9)-(12)

C80 S. 104 applied (with modifications) by the Oil Taxation Act 1975 (c. 22), s. 1, Sch. 2 para. 1(1)

C81S. 104 applied (with modifications) by Finance Act 1981 (c. 35), s. 134, Sch. 17 para. 18 (special tax on banking deposits).

C84S. 104 modified (N.I.) by Social Security (Contributions) Regulations (Northern Ireland) 1979 (S.R. 1979/186), reg. 47L(3) (as inserted (with effect in accordance with reg. 1(3) of the amending S.I.) by S.I. 2000/2208, regs. 1(1), 20)

C85S. 104 applied (with modifications) (6.4.2001) by The Social Security (Contributions) Regulations 2001 (S.I. 2001/1004), regs. 1(1), 82(3)

105 Evidence in cases of fraud or wilful default.U.K.

(1)Statements made or documents produced by or on behalf of a person shall not be inadmissable in any such proceedings as are mentioned in subsection (2) below by reason only that it has been drawn to his attention that—

[F149(a)pecuniary settlements may be accepted instead of a penalty being determined, or proceedings being instituted, in relation to any tax,]

(b)though no undertaking can be given as to whether or not the Board will accept such a settlement in the case of any particular person, it is the practice of the Board to be influenced by the fact that a person has made a full confession of any [F150fraudulent conduct] to which he had been a party and has given full facilities for investigation,

and that he was or may have been induced thereby to make the statements or produce the documents.

(2)The proceedings mentioned in subsection (1) above are—

(a)any criminal proceedings against the person in question for any form of [F150fraudulent conduct] in connection with or in relation to tax, and

(b)any proceedings against him for the recovery of any [F151tax due from him] F152[and

(c)any proceedings for a penalty or on appeal against the determination of a penalty.]

Textual Amendments

F150Finance Act 1989 (c. 26), s. 149(5)but not to affect the making of assessments before 1983-84 or for accounting periods ending before 1 April 1983.

Modifications etc. (not altering text)

C86 S. 105 applied (with modifications) by the Oil Taxation Act 1975 (c. 22), s. 1, Sch. 2 para. 1(1)

S. 105 applied (with modifications) by Finance Act 1981 (c. 35), s. 134, Sch. 17 para. 18 (special tax on banking deposits).

C87S. 105 applied (with modifications) (31.7.1997) by Finance (No. 2) Act 1997 (c. 58), Sch. 2 para. 18

C90S. 105 modified (N.I.) by Social Security (Contributions) Regulations (Northern Ireland) 1979 (S.R. 1979/186), reg. 47L(4) (as inserted (with effect in accordance with reg. 1(3) of the amending S.I.) by S.I. 2000/2208, regs. 1(1), 20)

106 Refusal to allow a deduction of income tax, and avoidance of agreements for payment without deduction. U.K.

(1)A person who refuses to allow a deduction of income tax authorised by the Taxes Acts to be made out of any payment shall incur a penalty of £50.

(2)Every agreement for payment of interest, rent or other annual payment in full without allowing any such deduction shall be void.

ScotlandU.K.

107 Criminal liability for false statements made to obtain allowances.U.K.

(1)This section applies only in Scotland.

(2)If any person, for the purpose of obtaining any allowance, reduction, rebate or repayment in respect of tax, either for himself or for any other person, or, in any return made with reference to tax, knowingly makes any false statement or false representation, he shall be liable, on summary conviction, to imprisonment for a term not exceeding six months.

(3)Notwithstanding anything in the Summary Jurisdiction (Scotland) Act 1954, proceedings for an offence under this section may be commenced at any time within three years from the time when the offence was committed.

(4)The expression “return” in this section shall be construed without regard to the definition in section 118(1) of this Act .

Modifications etc. (not altering text)

C92 S. 107(1)-(3) applied (with modifications) by the Oil Taxation Act 1975 (c. 22), s. 1, Sch. 2 para. 1(1)

S. 107 applied (with modifications) by Finance Act 1981 (c. 35), s. 134, Sch. 17 para. 18 (special tax on banking deposits).