Finance Act 2021

13 (1) Schedule 43C (penalty under section 212A: supplementary provision) is amended as follows.

(2) In the heading after “212A” insert “or 212B”.

(3) In paragraph 1, for “section 212A” substitute “sections 212A and 212B”

(4) In paragraph 2—

(a) for sub-paragraph (1), substitute—

“(1) The “value of the counteracted tax advantage” is—

(a) for a penalty under section 212A, the additional amount due or payable in respect of tax as a result of the counteraction mentioned in subsection (1)(d) of that section, and

(b) for a penalty under section 212B, the additional amount due or payable in respect of tax (by the partner in question) as a result of the counteraction mentioned in subsection (1)(b) of that section.”,

(b) for “section 212A(1)(c)” substitute “section 212A(1)(d) or as result of the counteraction mentioned in 212B(1)(b) (as the case may be)”, and

(c) in sub-paragraph (5), for “the”, in the second place it occurs, substitute “a”.

(5) In paragraph 3(1) omit “mentioned in section 212A(1)(b) (“the tax advantage”)”.

(6) In paragraph 4(1), after “212A” insert “or 212B (as the case may be)”.

(7) In paragraph 5—

(a) in sub-paragraph (1), after “212A” insert “or 212B (as the case may be)”, and

(b) in sub-paragraph (2), for paragraph (a) substitute—

“(a) notify—

(i) where the penalty is under section 212A, the person who is liable for it;

(ii) where the penalty is under section 212B, the person who is liable for it and the responsible partner.”, and

(c) in sub-paragraph (5), after “section 212A(1)(d)” insert “or section 212B(1)(b) (as the case may be)”.

(8) In paragraph 8—

(a) in sub-paragraph (1)(b), after “212A” insert “or 212B (as the case may be)”, and

(b) in sub-paragraph (4), after “212A” insert “or 212B”.

(9) In paragraph 9—

(a) in sub-paragraph (1)(a), after “212A” insert “or 212B”, and

(b) after sub-paragraph (1) insert—

“(1A) Where the penalty is under section 212B, an appeal against it must be brought by the responsible partner.”

(10) In paragraph 10(1), after section 212A insert “or 212B”.