# Finance Act 2007, Paragraph 2

Extent: E+W+S+N.I.

(1) A penalty is payable by a person (P) where—
(a) an assessment issued to P by HMRC understates P's liability to a relevant tax, and
(b) P has failed to take reasonable steps to notify HMRC, within the period of 30 days beginning with the date of the assessment, that it is an under-assessment.
(2) In deciding what steps (if any) were reasonable HMRC must consider—
(a) whether P knew, or should have known, about the under-assessment, and
(b) what steps would have been reasonable to take to notify HMRC.
(3) In sub-paragraph (1) “relevant tax” means any tax mentioned in the Table in paragraph 1.
(4) In this paragraph (and in Part 2 of this Schedule so far as relating to this paragraph)—
(a) “assessment” includes determination, and
(b) accordingly, references to an under-assessment include an under-determination.

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Source: https://www.legislation.gov.uk/ukpga/2007/11/schedule/24/paragraph/2 (the official version)
Page: https://openlegislation.uk/finance-act-2007/schedule-24/paragraph-2
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.