SCHEDULES

C1C2C6C3C8C7C4C5SCHEDULE 24Penalties for errors

Annotations:
Modifications etc. (not altering text)

Part 2Amount of penalty

Potential lost revenue: normal rule

I15

1

“The potential lost revenue” in respect of an inaccuracy in a document F1(including an inaccuracy attributable to a supply of false information or withholding of information) or a failure to notify an under-assessment is the additional amount due or payable in respect of tax as a result of correcting the inaccuracy or assessment.

2

The reference in sub-paragraph (1) to the additional amount due or payable includes a reference to—

a

an amount payable to HMRC having been erroneously paid by way of repayment of tax, and

b

an amount which would have been repayable by HMRC had the inaccuracy or assessment not been corrected.

3

In sub-paragraph (1) “tax” includes national insurance contributions.

4

The following shall be ignored in calculating potential lost revenue under this paragraph—

a

group relief, and

F2b

any relief under subsection (4) of section 419 of ICTA (relief in respect of repayment etc of loan) which is deferred under subsection (4A) of that section;

(but this sub-paragraph does not prevent a penalty being charged in respect of an inaccurate claim for relief).