SCHEDULES

SCHEDULE 28Follower notice penalties

PART 2Amendments consequential on Part 1

FA 2014

9

FA 2014 is amended as follows.

10

In the heading of Schedule 30 (section 208 penalty: value of the denied advantage), after “208” insert “or 208A”.

11

In Schedule 31 (follower notices and partnerships), after paragraph 4 insert—

“Additional penalty for unreasonable tax appeal

4A

Section 208A(3) applies, in relation to a partnership follower notice, as if the first reference to P were to each relevant partner.”

12

(1)

In Schedule 31, paragraph 5 is amended as follows.

(2)

In sub-paragraph (2)—

(a)

in paragraph (a), for “20%” substitute “12%”;

(b)

after paragraph (a), insert—

“(aa)

the total amount of the penalties under section 208A(3) for which the relevant partners are liable is 8% of the value of the denied advantage,”;

(c)

in paragraph (b), after “the penalty” insert “under section 208(2) or 208A(3) (as modified by this paragraph)”.

(3)

In sub-paragraph (5), after “penalties” insert “under section 208(2) (as modified by this paragraph)”.

(4)

In sub-paragraph (6), after “paragraph 4(2)” insert “or 4A”.

(5)

In sub-paragraph (7)(a), after “penalties” insert “under section 208(2)”.

(6)

After sub-paragraph (9), insert—

“(9A)

The right of appeal under section 214A extends to—

(a)

a decision that penalties under section 208A(3) are payable by the relevant partners by virtue of this paragraph, and

(b)

a decision as to the total amount of those penalties payable by those partners,

but not to a decision as to the appropriate share of, or the amount of a penalty payable by, a relevant partner.

(9B)

Section 214A(3) applies to an appeal by virtue of sub-paragraph (9A)(a) as it applies to an appeal under section 214A(1).

(9C)

Section 214A(5) applies to an appeal by virtue of sub-paragraph (9A)(a), and section 214A(6) to an appeal by virtue of sub-paragraph (9A)(b).”

(7)

In sub-paragraph (11), after “(2)(a)” insert “and (aa)”.

National Insurance Contributions Act 2015

13

(1)

In Schedule 2 to the National Insurance Contributions Act 2015, paragraph 20 (recovery of penalties under Part 4 of FA 2014) is amended as follows.

(2)

In sub-paragraph (1), after “208” insert “, 208A”.

(3)

In sub-paragraph (3), after “208” insert “or 208A”.