Finance Act 2021

Valid from 06/04/2024

3 (1) A person who fails to make a return on or before the due date is liable to a penalty under this paragraph if (and only if) the condition in sub-paragraph (2) is met. U.K.

(2) The condition is that at any time (including any time after the due date), by failing to make the return, the person deliberately withholds information which would enable or assist HMRC to assess the person's liability to tax.

(3) If the withholding of the information is deliberate and concealed, the penalty is—

(a) the relevant percentage of any liability to tax which would have been shown in the return in question, or

(b) if the amount in paragraph (a) is less than £300, £300.

(4) For the purposes of sub-paragraph (3)(a) the relevant percentage is—

(a) for the withholding of category 1 information, 100%,

(b) for the withholding of category 2 information, 150%, and

(c) for the withholding of category 3 information, 200%.

(5) If the withholding of the information is deliberate but not concealed, the penalty is—

(a) the relevant percentage of any liability to tax which would have been shown in the return in question, or

(b) if the amount in paragraph (a) is less than £300, £300.

(6) For the purposes of sub-paragraph (5)(a) the relevant percentage is—

(a) for the withholding of category 1 information, 70%,

(b) for the withholding of category 2 information, 105%, and

(c) for the withholding of category 3 information, 140%.

(7) Paragraph 4 explains the categories of information.

(8) The withholding of information by a person is—

(a) deliberate and concealed, if the person deliberately withholds the information and makes arrangements to conceal the fact that the information has been withheld;

(b) deliberate but not concealed, if the person deliberately withholds the information but does not make arrangements to conceal the fact that the information has been withheld.

(9) See paragraphs 15 and 16 for further rules about liability to a penalty.