SCHEDULES

SCHEDULE 41Penalties: failure to notify and certain VAT and excise wrongdoing

Special reduction

14

(1)

If HMRC think it right because of special circumstances, they may reduce a penalty under any of paragraphs 1 to 4.

(2)

In sub-paragraph (1) “special circumstances” does not include—

(a)

ability to pay, or

(b)

the fact that a potential loss of revenue from one taxpayer is balanced by a potential over-payment by another.

(3)

In sub-paragraph (1) the reference to reducing a penalty includes a reference to—

(a)

staying a penalty, and

(b)

agreeing a compromise in relation to proceedings for a penalty.