SCHEDULES

SCHEDULE 1Penalties: procedure and appeals

Appeals against penalty determinations

3

(1)

An appeal may be brought against the determination of a penalty under paragraph 1.

(2)

The provisions of the Taxes Management Act 1970 relating to appeals, except section 50(6) to (8), 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 taxF1except that references to the tribunal shall be taken to be references to the First-tier Tribunal.

(3)

On an appeal by virtue of sub-paragraph (2) against the determination of a penalty under paragraph 1, the F2First-tier Tribunal may—

(a)

if it appears F3... that no penalty has been incurred, set the determination aside;

(b)

if the amount determined appears F3... to be appropriate, confirm the determination;

(c)

if the amount determined appears F4... to be excessive, reduce it to such other amount (including nil) as F5the tribunal considersappropriate;

(d)

if the amount determined appears F4... to be insufficient, increase it to such amount not exceeding the permitted maximum as F5the tribunal considers appropriate.

F6(4)

In addition to any right of appeal on a point of law under section 11(2) of the Tribunals, Courts and Enforcement Act 2007, the person liable to the penalty may appeal to the Upper Tribunal against the amount of the penalty which had been determined under sub-paragraph (3), but not against any decision which falls under section 11(5)(d) or (e) of that Act and was made in connection with the determination of the amount of the penalty.

(4A)

Section 11(3) and (4) of the Tribunals, Courts and Enforcement Act 2007 applies to the right of appeal under sub-paragraph (4) as it applies to the right of appeal under section 11(2) of that Act.

(4B)

On an appeal under this paragraph the Upper Tribunal has the like jurisdiction as is conferred on the First-tier Tribunal by virtue of this paragraph.