Reductions for disclosureU.K.
7(1)Paragraph 8 provides for reductions in the penalty under this Schedule where the person discloses information which has been withheld by a failure to make a return (“relevant information”).U.K.
(2)A person discloses relevant information that involves a domestic matter 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.
(3)A person discloses relevant information that involves an offshore matter or an offshore transfer 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.
(4)The Treasury must make regulations setting out what is meant by “additional information” for the purposes of sub-paragraph (3)(d).
(5)Disclosure of relevant information—
(a)is “unprompted” if made at a time when the person has no reason to believe that HMRC have discovered or are about to discover the relevant information, and
(b)otherwise, is “prompted”.
(6)In relation to disclosure “quality” includes timing, nature and extent.
(7)Paragraph 4(4) to (6) applies to determine whether relevant information involves an offshore matter, an offshore transfer or a domestic matter.
Commencement Information
I1Sch. 25 para. 7 in force at 6.4.2024 for specified purposes by S.I. 2024/440, reg. 2(1)
8(1)If a person who would otherwise be liable to a penalty of a percentage shown in column 1 of the Table in this paragraph (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 percentage | Minimum percentage for prompted disclosure | Minimum percentage for unprompted disclosure |
|---|---|---|
| 70% | 45% | 30% |
| 100% | 60% | 40% |
| 105% | 62.5% | 40% |
| 140% | 80% | 50% |
| 150% | 85% | 55% |
| 200% | 110% | 70% |
(3)But HMRC must not under this paragraph reduce a penalty below £300.
Commencement Information
I2Sch. 25 para. 8 in force at 6.4.2024 for specified purposes by S.I. 2024/440, reg. 2(1)