SCHEDULES

C1SCHEDULE 24Penalties for errors

Annotations:
Modifications etc. (not altering text)

Part 1Liability for penalty

Under-assessment by HMRC

I12

1

A penalty is payable by a person (P) where—

a

an assessment issued to P by HMRC understates P's liability to tax, and

b

P has failed to take reasonable steps to notify HMRC, within the period of 30 days beginning with the date of the assessment, that it is an under-assessment.

2

In deciding what steps (if any) were reasonable HMRC must consider—

a

whether P knew, or should have known, about the under-assessment, and

b

what steps would have been reasonable to take to notify HMRC.

3

In sub-paragraph (1) “tax” means—

a

income tax,

b

capital gains tax,

c

corporation tax, and

d

VAT.