SCHEDULES

SCHEDULE 22U.K.Asset-based penalty for offshore inaccuracies and failures

PART 1U.K.Liability for penalty

Meaning of standard offshore tax penaltyU.K.

2(1)A standard offshore tax penalty is a penalty that falls within sub-paragraph (2), (3) [F1(4) [F2or (4A)] [F2, (4A) or (4B)]].U.K.

(2)A penalty falls within this sub-paragraph if—

(a)it is imposed under paragraph 1 of Schedule 24 to FA 2007 (inaccuracy in taxpayer's document),

(b)the inaccuracy for which the penalty is imposed involves an offshore matter or an offshore transfer,

(c)it is imposed for deliberate action (whether concealed or not), and

(d)the tax at stake is (or includes) capital gains tax, inheritance tax or asset-based income tax.

(3)A penalty falls within this sub-paragraph if—

(a)it is imposed under paragraph 1 of Schedule 41 to FA 2008 (penalty for failure to notify),

(b)the failure for which the penalty is imposed involves an offshore matter or an offshore transfer,

(c)it is imposed for a deliberate failure (whether concealed or not), and

(d)the tax at stake is (or includes) capital gains tax or asset-based income tax.

(4)A penalty falls within this sub-paragraph if—

(a)it is imposed under paragraph 6 of Schedule 55 to FA 2009 (penalty for failure to make return more than 12 months after filing date),

(b)it is imposed for the withholding of information involving an offshore matter or an offshore transfer,

(c)it is imposed for a deliberate withholding of information (whether concealed or not), and

(d)the tax at stake is (or includes) capital gains tax, inheritance tax or asset-based income tax.

[F3(4A)A penalty falls within this [F4paragraph] [F4sub-paragraph] if—

(a)it is imposed on a person under paragraph 1 of Schedule 18 to FA 2017 (requirement to correct relevant offshore tax non-compliance),

(b)the person was aware at any time during the RTC period that at the end of the 2016-17 tax year P had relevant offshore tax non-compliance to correct, and

(c)the tax at stake is (or includes) capital gains tax, inheritance tax or asset-based income tax.]

[F5(4B)A penalty falls within this sub-paragraph if—

(a)it is imposed under paragraph 3 of Schedule 25 to FA 2021 (penalties for deliberately withholding information),

(b)it is imposed for the withholding of information involving an offshore matter or an offshore transfer, and

(c)the tax at stake is (or includes) capital gains tax or asset-based income tax.]

(5)In a case where the inaccuracy, failure or withholding of information for which a penalty is imposed involves both an offshore matter or an offshore transfer and a domestic matter, the standard offshore tax penalty is only that part of the penalty that involves the offshore matter or offshore transfer.

[F6(5A)Sub-paragraph (5) does not apply to a penalty imposed under paragraph 1 of Schedule 18 to FA 2017.]

(6)In a case where the tax at stake in relation to a penalty includes a tax other than capital gains tax, inheritance tax or asset-based income tax, the standard offshore tax penalty is only that part of the penalty which relates to capital gains tax, inheritance tax or asset-based income tax.

(7)“Asset-based income tax” means income tax that is charged under any of the provisions mentioned in column 1 of the table in paragraph 13(2).

Textual Amendments

F1Words in Sch. 22 para. 2(1) substituted (with effect in accordance with Sch. 18 paras. 2-13 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 18 para. 28(2)(a)

F2Words in Sch. 22 para. 2(1) substituted (6.4.2024 for specified purposes) by Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 48(2)(a); S.I. 2024/440, reg. 2

F3Sch. 22 para. 2(4A) inserted (with effect in accordance with Sch. 18 paras. 2-13 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 18 para. 28(2)(b)

F4Word in Sch. 22 para. 2(4A) substituted (6.4.2024 for specified purposes) by Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 48(2)(b); S.I. 2024/440, reg. 2

F6Sch. 22 para. 2(5A) inserted (with effect in accordance with Sch. 18 paras. 2-13 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 18 para. 28(2)(c)

Commencement Information

I1Sch. 22 para. 2 in force at 1.4.2017 with effect in accordance with reg. 2(b) by S.I. 2017/277, reg. 2(b)