Finance Act 1999

108 Penalties

(1) For section 245 of the [1984 c. 51.] Inheritance Tax Act 1984 (failure to provide information) there shall be substituted the following sections—

“245 Failure to deliver accounts

(1) This section applies where a person (“the taxpayer”) fails to deliver an account under section 216 or 217 above.

(2) The taxpayer shall be liable—

(a) to a penalty not exceeding £100; and

(b) to a further penalty not exceeding £60 for every day after the day on which the failure has been declared by a court or the Special Commissioners and before the day on which the account is delivered.

(3) If—

(a) proceedings in which the failure could be declared are not commenced before the end of the relevant period, and

(b) the taxpayer has not delivered the account by the end of that period,

he shall be liable to a further penalty not exceeding £100.

(4) In subsection (3) above “the relevant period” means the period of six months beginning immediately after the end of the period given by section 216(6) or (7) or section 217 above (whichever is applicable).

(5) If the taxpayer proves that his liability to tax does not exceed a particular amount, the penalty under subsection (2)(a) above, together with any penalty under subsection (3) above, shall not exceed that amount.

(6) A person shall not be liable to a penalty under subsection (2)(b) above if he delivers the account required by section 216 or 217 before proceedings in which the failure could be declared are commenced.

(7) A person who has a reasonable excuse for failing to deliver an account shall not be liable by reason of that failure to a penalty under this section, unless he fails to deliver the account without unreasonable delay after the excuse has ceased.

245A Failure to provide information etc

(1) A person who fails to make a return under section 218 above shall be liable—

(a) to a penalty not exceeding £300; and

(b) to a further penalty not exceeding £60 for every day after the day on which the failure has been declared by a court or the Special Commissioners and before the day on which the return is made.

(2) A person who fails to comply with a notice under section 219 above shall be liable—

(a) to a penalty not exceeding £300; and

(b) to a further penalty not exceeding £60 for every day after the day on which the failure has been declared by a court or the Special Commissioners and before the day on which the notice is complied with.

(3) A person who fails to comply with a notice under section 219A(1) or (4) above shall be liable—

(a) to a penalty not exceeding £50; and

(b) to a further penalty not exceeding £30 for every day after the day on which the failure has been declared by a court or the Special Commissioners and before the day on which the notice is complied with.

(4) A person shall not be liable to a penalty under subsection (1)(b), (2)(b) or (3)(b) above if—

(a) he makes the return required by section 218 above,

(b) he complies with the notice under section 219 above, or

(c) he complies with the notice under section 219A(1) or (4) above,

before proceedings in which the failure could be declared are commenced.

(5) A person who has a reasonable excuse for failing to make a return or to comply with a notice shall not be liable by reason of that failure to a penalty under this section, unless he fails to make the return or to comply with the notice without unreasonable delay after the excuse has ceased.”

(2) In section 247 of that Act (provision of incorrect information)—

(a) in subsection (1)—

(i) for “£50 and twice the difference” there shall be substituted “£3,000 and the difference”; and

(ii) for “£50”, in the other place where it occurs, there shall be substituted “£1,500”;

(b) in subsection (3), for “£500” and “£250” there shall be substituted “£3,000” and “£1,500” respectively; and

(c) in subsection (4), for “£500” there shall be substituted “£3,000”.

(3) Subsection (1) above does not have effect in relation to a failure by any person—

(a) to deliver an account under section 216 or 217 of the [1984 c. 51.] Inheritance Tax Act 1984,

(b) to make a return under section 218 of that Act, or

(c) to comply with a notice under section 219 of that Act,

where the period within which the person is required to perform the obligation in question expires before the day on which this Act is passed.

(4) Subsection (2) above has effect in relation to incorrect accounts, information or documents delivered, furnished or produced on or after the day on which this Act is passed.