7(1)Paragraph 3 of Schedule 53 to FA 2009 (late payment interest start date: amendments and discovery assessments etc) is amended as follows.U.K.
(2)In sub-paragraph (3)—
(a)for “as required” substitute “ in accordance with a requirement ”, and
(b)after “tax)” insert “ that arose by virtue of subsection (1A) of that section ”.
(3)After that sub-paragraph insert—
“(3A)In the case of a person (“P”) who failed to give notice in accordance with a requirement under section 7 of TMA 1970 that arose by virtue of subsection (1B) of that section, the reference in sub-paragraph (1)(c) to an assessment which ought to have been made by P is a reference to the assessment which P would have been required to make if no notice relating to the year of assessment concerned had been withdrawn under section 8B of that Act.”
8U.K.In Schedule 55 to that Act (penalty for failure to make returns etc), after paragraph 17 insert—
17A(1)This paragraph applies where—
(a)P is liable for a penalty under any paragraph of this Schedule in relation to a failure to make a return falling within item 1 or 2 in the Table, and
(b)P makes a request under section 8B of TMA 1970 for HMRC to withdraw a notice under section 8 or 8A of that Act.
(2)The notice under section 8B of TMA 1970 may include provision under this paragraph cancelling liability to the penalty from the date specified in the notice.
17B(1)This paragraph applies where—
(a)P is liable for a penalty under any paragraph of this Schedule in relation to a failure to make a return falling within item 3 in the Table, and
(b)a request is made under section 12AAA of TMA 1970 for HMRC to withdraw a notice under section 12AA of that Act.
(2)The notice under section 12AAA of TMA 1970 may include provision under this paragraph cancelling liability to the penalty from the date specified in the notice.”