Finance Act 2009

Reductions for disclosure U.K.

14 [F1 (A1) In this paragraph, “relevant information” means information which has been withheld by a failure to make a return.] U.K.

(1) Paragraph 15 provides for reductions in the penalty under paragraph 6(3) or (4) [F2 where P discloses relevant information that involves a domestic matter] [F3 or 11(3) or (4)][F3 , 11(3) or (4), 13E(3) or (4) or 13J(3) or (4)] where P discloses [F4 relevant information].

[F5 (1A) Paragraph 15A provides for reductions in the penalty under paragraph 6(3) or (4) where P discloses relevant information that involves an offshore matter or an offshore transfer.

(1B) Sub-paragraph (2) applies where—

(a) P is liable to a penalty under paragraph 6(3) or (4) and P discloses relevant information that involves a domestic matter, or

(b) P is liable to a penalty under any of the other provisions mentioned in sub-paragraph (1) and P discloses relevant information.]

(2) P discloses relevant information by—

(a) telling HMRC about it,

(b) giving HMRC reasonable help in quantifying any tax unpaid by reason of its having been withheld, and

(c) allowing HMRC access to records for the purpose of checking how much tax is so unpaid.

[F6 (2A) Sub-paragraph (2B) applies where P is liable to a penalty under paragraph 6(3) or (4) and P discloses relevant information that involves an offshore matter or an offshore transfer.

(2B) P discloses relevant information by—

(a) telling HMRC about it,

(b) giving HMRC reasonable help in quantifying any tax unpaid by reason of its having been withheld,

(c) allowing HMRC access to records for the purpose of checking how much tax is so unpaid, and

(d) providing HMRC with additional information.

(2C) The Treasury must make regulations setting out what is meant by “additional information” for the purposes of sub-paragraph (2B)(d).

(2D) Regulations under sub-paragraph (2C) are to be made by statutory instrument.

(2E) An instrument containing regulations under sub-paragraph (2C) is subject to annulment in pursuance of a resolution of the House of Commons.]

(3) Disclosure of relevant information—

(a) is “unprompted” if made at a time when P has no reason to believe that HMRC have discovered or are about to discover the relevant information, and

(b) otherwise, is “prompted”.

(4) In relation to disclosure “quality” includes timing, nature and extent.

[F7 (5) Paragraph 6A(4) to (5) applies to determine whether relevant information involves an offshore matter, an offshore transfer or a domestic matter for the purposes of this paragraph.]

Textual Amendments

F1 Sch. 55 para. 14(A1) inserted (with effect in accordance with reg. 2 of the commencing S.I.) by Finance Act 2016 (c. 24), s. 163(2), Sch. 21 para. 10(2); S.I. 2017/259, reg. 2

F2 Words in Sch. 55 para. 14(1) inserted (with effect in accordance with reg. 2 of the commencing S.I.) by Finance Act 2016 (c. 24), s. 163(2), Sch. 21 para. 10(3)(a); S.I. 2017/259, reg. 2

F3 Words in Sch. 55 para. 14(1) substituted (12.2.2019 for specified purposes) by Finance (No. 3) Act 2010 (c. 33), s. 26(2), Sch. 10 para. 8; 2019 c. 1, s. 67(2)

F4 Words in Sch. 55 para. 14(1) substituted (with effect in accordance with reg. 2 of the commencing S.I.) by Finance Act 2016 (c. 24), s. 163(2), Sch. 21 para. 10(3)(b); S.I. 2017/259, reg. 2

F5 Sch. 55 para. 14(1A)(1B) inserted (with effect in accordance with reg. 2 of the commencing S.I.) by Finance Act 2016 (c. 24), s. 163(2), Sch. 21 para. 10(4); S.I. 2017/259, reg. 2

F6 Sch. 55 para. 14(2A)-(2E) inserted (in so far as not already in force and with effect in accordance with reg. 2 of the commencing S.I. of the commencing S.I.) by Finance Act 2016 (c. 24), s. 163(2), Sch. 21 para. 10(5); S.I. 2017/259, regs. 2, 3

F7 Sch. 55 para. 14(5) inserted (with effect in accordance with reg. 2 of the commencing S.I.) by Finance Act 2016 (c. 24), s. 163(2), Sch. 21 para. 10(6); S.I. 2017/259, reg. 2

Commencement Information

I1 Sch. 55 para. 14 in force at 1.4.2011 for specified purposes and 6.4.2011 for specified purposes by S.I. 2011/702, art. 2 (with art. 1(2))

I2 Sch. 55 para. 14 in force at 6.10.2011 for specified purposes by S.I. 2011/2391, art. 2(b) (with art. 3(1)(2))

I3 Sch. 55 para. 14 in force at 17.7.2013 for specified purposes by 2013 c. 29, Sch. 34 para. 7(2)

Sch. 55 para. 14 in force at 6.4.2018 for specified purposes by S.I. 2018/468, art. 2(b)

I4 Sch. 55 para. 14 in force at 12.2.2019 for specified purposes by 2019 c. 1, Sch. 2 para. 29(3)

I5 Sch. 55 para. 14 in force at 1.4.2022 for specified purposes by S.I. 2021/1409, reg. 2(b)

15 (1) [F8 Where a person who would otherwise be liable to a 100% penalty has made an unprompted disclosure, HMRC must reduce the 100% to a percentage, not below 30%, which reflects the quality of the disclosure.] U.K.

[F8 If a person who would otherwise be liable to a penalty of a percentage shown in column 1 of the Table (a “standard percentage”) has made a disclosure, HMRC must reduce the standard percentage to one that reflects the quality of the disclosure.]

(2) [F8 Where a person who would otherwise be liable to a 100% penalty has made a prompted disclosure, HMRC must reduce the 100% to a percentage, not below 50%, which reflects the quality of the disclosure.]

[F8 But the standard percentage may not be reduced to a percentage that is below the minimum shown for it—

(a) in the case of a prompted disclosure, in column 2 of the Table, and

(b) in the case of an unprompted disclosure, in column 3 of the Table.]

[F9 Standard %	Minimum % for prompted disclosure	Minimum % for unprompted disclosure
70%	35%	20%
100%	50%	30%]

(3) [F10 Where a person who would otherwise be liable to a 70% penalty has made an unprompted disclosure, HMRC must reduce the 70% to a percentage, not below 20%, which reflects the quality of the disclosure.]

(4) [F11 Where a person who would otherwise be liable to a 70% penalty has made a prompted disclosure, HMRC must reduce the 70% to a percentage, not below 35%, which reflects the quality of the disclosure.]

(5) But HMRC must not under this paragraph—

(a) reduce a penalty under paragraph 6(3) or (4) below £300, or

(b) reduce a penalty under [F12 paragraph 11(3) or (4)][F12 sub-paragraph (3) or (4) of any of paragraphs 11, 13E and 13J] below the amount set by [F13 paragraph 11(3)(b) or (4)(b) (as the case may be)][F13 paragraph (b) of that sub-paragraph].

Textual Amendments

F8 Sch. 55 para. 15(1)(2) substituted (6.4.2011 for specified purposes) by Finance Act 2010 (c. 13), s. 35(2), Sch. 10 para. 13(2); S.I. 2011/975, art. 2(2) (with art. 5)

F9 Sch. 55 para. 15(2) Table substituted (with effect in accordance with reg. 2 of the commencing S.I.) by Finance Act 2016 (c. 24), s. 163(2), Sch. 21 para. 11; S.I. 2017/259, reg. 2

F10 Sch. 55 para. 15(3) omitted (6.4.2011 for specified purposes) by virtue of Finance Act 2010 (c. 13), s. 35(2), Sch. 10 para. 13(3); S.I. 2011/975, art. 2(2) (with art. 5)

F11 Sch. 55 para. 15(4) omitted (6.4.2011 for specified purposes) by virtue of Finance Act 2010 (c. 13), s. 35(2), Sch. 10 para. 13(3); S.I. 2011/975, art. 2(2) (with art. 5)

F12 Words in Sch. 55 para. 15(5) substituted (12.2.2019 for specified purposes) by Finance (No. 3) Act 2010 (c. 33), s. 26(2), Sch. 10 para. 9(a); 2019 c. 1, s. 67(2)

F13 Words in Sch. 55 para. 15(5) substituted (12.2.2019 for specified purposes) by Finance (No. 3) Act 2010 (c. 33), s. 26(2), Sch. 10 para. 9(b); 2019 c. 1, s. 67(2)

Commencement Information

I6 Sch. 55 para. 15 in force at 1.4.2011 for specified purposes and 6.4.2011 for specified purposes by S.I. 2011/702, art. 2 (with art. 1(2))

I7 Sch. 55 para. 15 in force at 6.10.2011 for specified purposes by S.I. 2011/2391, art. 2(b) (with art. 3(1)(2))

I8 Sch. 55 para. 15 in force at 17.7.2013 for specified purposes by 2013 c. 29, Sch. 34 para. 7(2)

Sch. 55 para. 15 in force at 6.4.2018 for specified purposes by S.I. 2018/468, art. 2(b)

I9 Sch. 55 para. 15 in force at 12.2.2019 for specified purposes by 2019 c. 1, Sch. 2 para. 29(3)

I10 Sch. 55 para. 15 in force at 1.4.2022 for specified purposes by S.I. 2021/1409, reg. 2(b)

[F14 15A (1) If a person who would otherwise be liable to a penalty of a percentage shown in column 1 of the Table (a “standard percentage”) has made a disclosure, HMRC must reduce the standard percentage to one that reflects the quality of the disclosure. U.K.

(2) But the standard percentage may not be reduced to a percentage that is below the minimum shown for it—

(a) in the case of a prompted disclosure, in column 2 of the Table, and

(b) in the case of an unprompted disclosure, in column 3 of the Table.

Standard %	Minimum % for prompted disclosure	Minimum % for unprompted disclosure
70%	45%	30%
87.5%	53.75%	35%
100%	60%	40%
105%	62.5%	40%
125%	72.5%	50%
140%	80%	50%
150%	85%	55%
200%	110%	70%

(3) But HMRC must not under this paragraph reduce a penalty below £300.]

Textual Amendments

F14 Sch. 55 para. 15A inserted (with effect in accordance with reg. 2 of the commencing S.I.) by Finance Act 2016 (c. 24), s. 163(2), Sch. 21 para. 12; S.I. 2017/259, reg. 2

Commencement Information

I11 Sch. 55 para. 15A in force at 6.4.2018 for specified purposes by S.I. 2018/468, art. 2(b)

I12 Sch. 55 para. 15A in force at 12.2.2019 for specified purposes by 2019 c. 1, Sch. 2 para. 29(3)

I13 Sch. 55 para. 15A in force at 1.4.2022 for specified purposes by S.I. 2021/1409, reg. 2(b)