Finance Act 2022

Liability to penaltyU.K.

1(1)Sub-paragraph (2) applies in relation to a person (“A”) if the person is liable to pay—

(a)a penalty within sub-paragraph (3), or

(b)one or more penalties within sub-paragraph (4), provided that the total amount that is payable under that penalty or those penalties is at least £100,000.

In this Schedule penalties by virtue of which sub-paragraph (2) applies in relation to a person are called “the original penalties”.

(2)A is liable to a further penalty if—

(a)the original penalties were incurred in respect of activities (the “original activities”) which A carried out as a member of the same promotion structure as a non-resident promoter (“P”), and

(b)the original activities related to a relevant proposal or relevant arrangements in relation to which P was a promoter (the “facilitated proposal or arrangements”).

(3)Penalties are within this paragraph if they are incurred under—

(a)the entry relating to section 236B(1) of FA 2014 (effect of stop notices) in the table at paragraph 2(1) of Schedule 35 to that Act (promoters of tax avoidance schemes: penalties);

(b)Schedule 16 to F(No.2)A 2017 (penalties for enablers of defeated tax avoidance).

(4)Penalties are within this paragraph if they are incurred under any of the following—

(a)section 98C of TMA 1970 (disclosure of tax avoidance schemes);

(b)Part 5 of FA 2014 (promoters of tax avoidance schemes) (other than the provision mentioned in sub-paragraph (3)(a)), and Schedule 36 to FA 2008 (information and inspection powers) as it has effect in relation to that Part (see section of 272A of FA 2014);

(c)Schedule 36 to FA 2008 as it has effect in relation to Schedule 16 to F(No.2)A 2017 (see Part 9 of Schedule 16 to F(No.2)A 2017);

(d)Schedule 17 to F(No.2)A 2017 (disclosure of tax avoidance schemes: VAT and other indirect taxes).

(5)For the purposes of this paragraph, a person is liable to pay a penalty within sub-paragraph (3) or (4) from the time at which—

(a)notice of the penalty is given, in a case where the penalty is to be imposed by HMRC, or

(b)the penalty is determined, in a case where the penalty is to be determined by the First-tier Tribunal,

regardless of any outstanding appeal relating to the original penalty.

(6)In this paragraph, a “non-resident promoter” is a person who carries on a business as a promoter and is resident outside the United Kingdom.