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Paragraph 4A F1

United Kingdom

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

(1)

An inaccuracy is in category 1 if—

(a)

it involves a domestic matter, or

(b)

it involves an offshore matter and—

(i)

the territory in question is a category 1 territory, or

(ii)

the tax at stake is a tax other than income tax or capital gains tax.

(2)

An inaccuracy is in category 2 if—

(a)

it involves an offshore matter F2or an offshore transfer ,

(b)

the territory in question is a category 2 territory, and

(c)

the tax at stake is income tax F3, capital gains tax or inheritance tax .

(3)

An inaccuracy is in category 3 if—

(a)

it involves an offshore matter F4or an offshore transfer ,

(b)

the territory in question is a category 3 territory, and

(c)

the tax at stake is income tax F5 , capital gains tax or inheritance tax .

(4)

An inaccuracy “involves an offshore matter” if it results in a potential loss of revenue that is charged on or by reference to—

(a)

income arising from a source in a territory outside the UK,

(b)

assets situated or held in a territory outside the UK,

(c)

activities carried on wholly or mainly in a territory outside the UK, or

(d)

anything having effect as if it were income, assets or activities of a kind described above.

(F64A)

Where the tax at stake is inheritance tax, assets are treated for the purposes of sub-paragraph (4) as situated or held in a territory outside the UK if they are so situated or held immediately after the transfer of value by reason of which inheritance tax becomes chargeable.

(4B)

An inaccuracy “involves an offshore transfer” if—

(a)

it does not involve an offshore matter,

(b)

it is deliberate (whether or not concealed) and results in a potential loss of revenue,

(c)

the tax at stake is income tax, capital gains tax or inheritance tax, and

(d)

the applicable condition in paragraph 4AA is satisfied.

(5)

An inaccuracy “involves a domestic matter” if it results in a potential loss of revenue F7and does not involve either an offshore matter or an offshore transfer .

(6)

If a single inaccuracy is in more than one category (each referred to as a “relevant category”)—

(a)

it is to be treated for the purposes of this Schedule as if it were separate inaccuracies, one in each relevant category according to the matters F8or transfers that it involves, and

(b)

the potential lost revenue is to be calculated separately in respect of each separate inaccuracy.

(7)

“Category 1 territory”, “category 2 territory” and “category 3 territory” are defined in paragraph 21A.

(8)

“Assets” has the meaning given in section 21(1) of TCGA 1992, but also includes sterling.

Annotations

Textual amendments

F1

Sch. 24 paras. 4-4D substituted for Sch. 24 para. 4 (6.4.2011) by Finance Act 2010 (c. 13), s. 35(2), Sch. 10 para. 2; S.I. 2011/975, art. 2(1) (with art. 3)

F2

Words in Sch. 24 para. 4A(2)(a) inserted (with effect in accordance with art. 3(2) of the commencing S.I.) by Finance Act 2015 (c. 11), s. 120(2), Sch. 20 para. 3(3)(a); S.I. 2016/456, art. 3(1)

F3

Words in Sch. 24 para. 4A(2)(c) substituted (with effect in accordance with art. 3(2) of the commencing S.I.) by Finance Act 2015 (c. 11), s. 120(2), Sch. 20 para. 3(3)(b); S.I. 2016/456, art. 3(1)

F4

Words in Sch. 24 para. 4A(3)(a) inserted (with effect in accordance with art. 3(2) of the commencing S.I.) by Finance Act 2015 (c. 11), s. 120(2), Sch. 20 para. 3(4)(a); S.I. 2016/456, art. 3(1)

F5

Words in Sch. 24 para. 4A(3)(c) substituted (with effect in accordance with art. 3(2) of the commencing S.I.) by Finance Act 2015 (c. 11), s. 120(2), Sch. 20 para. 3(4)(b); S.I. 2016/456, art. 3(1)

F6

Sch. 24 para. 4A(4A)(4B) inserted (with effect in accordance with art. 3(2) of the commencing S.I.) by Finance Act 2015 (c. 11), s. 120(2), Sch. 20 para. 3(5); S.I. 2016/456, art. 3(1)

F7

Words in Sch. 24 para. 4A(5) substituted (with effect in accordance with art. 3(2) of the commencing S.I.) by Finance Act 2015 (c. 11), s. 120(2), Sch. 20 para. 3(6); S.I. 2016/456, art. 3(1)

F8

Words in Sch. 24 para. 4A(6)(a) inserted (with effect in accordance with art. 3(2) of the commencing S.I.) by Finance Act 2015 (c. 11), s. 120(2), Sch. 20 para. 3(7); S.I. 2016/456, art. 3(1)

Notes on Schedule 24

Modifications

C1

Sch. 24 applied (N.I.) (1.4.2008) by The Education (Student Loans) (Repayment) Regulations (Northern Ireland) 2000 (S.R. 2000/121), regs. 7(2A)(b), 26(4) (as amended by S.R. 2008/129, regs. 1, 3(a), 4)

C2

Sch. 24 applied (6.4.2008) by The Social Security (Contributions) Regulations 2001 (S.I. 2001/1004), reg. 81(1)(1A), Sch. 4 paras. 21A(8), 21D(9), 21F(12), 22(7), 31(8) (as amended by S.I. 2008/636, reg. 7; S.I. 2010/721, reg. 4; S.I. 2012/821, reg. 11)

C3

Sch. 24 applied (E.W.) (6.4.2009) by The Education (Student Loans) (Repayment) Regulations 2009 (S.I. 2009/470), regs. 1(1), 13(3)(b), 40(4), 59(8)(b) (with reg. 1(4)(6))

C4

Sch. 24 applied (N.I.) (6.4.2009) by The Education (Student Loans) (Repayment) Regulations (Northern Ireland) 2009 (S.R. 2009/128), regs. 1(1), 9(3)(b), 35(4), 54(8)(b)

C5

Sch. 24 modified (8.4.2010) by Finance Act 2010 (c. 13), Sch. 1 para. 37

C6

Sch. 24 applied (with modifications) (19.4.2013) by The Small Charitable Donations Regulations 2013 (S.I. 2013/938), regs. 1, 15

C7

Sch. 24 excluded (17.7.2014) by Finance Act 2014 (c. 26), Sch. 35 para. 13(a)

C8

Sch. 24 applied by 1993 c. 34, Sch. 20A para. 9A(6) (as inserted (19.12.2014) by The Lloyd's Underwriters (Conversion of Partnerships to Underwriting through Successor Companies) (Tax) Regulations 2014 (S.I. 2014/3133), regs. 1, 5(4))

C9

Sch. 24 applied (with modifications) by 1992 c. 4, s. 11A(1)(3) (as inserted (with effect in accordance with Sch. 1 para. 35 of the amending Act) by National Insurance Contributions Act 2015 (c. 5), Sch. 1 para. 3)

C10

Sch. 24 applied (with modifications) by 1992 c.7 (N.I.) s. 11A(1)(3) (as inserted (with effect in accordance with Sch. 1 para. 35 of the amending Act) by National Insurance Contributions Act 2015 (c. 5), Sch. 1 para. 12)

C11

Sch. 24 applied (with application in accordance with reg. 1 of the amending S.I.) by The Education (Postgraduate Masters Degree Loans) Regulations 2016 (S.I. 2016/606), regs. 1(1), 85(4)

C12

Sch. 24 applied (with application in accordance with reg. 1 of the amending S.I.) by The Education (Postgraduate Masters Degree Loans) Regulations 2016 (S.I. 2016/606), regs. 1(1), 50(3)

C13

Sch. 24 applied (with application in accordance with reg. 1 of the amending S.I.) by The Education (Postgraduate Masters Degree Loans) Regulations 2016 (S.I. 2016/606), regs. 1(1), 24(3)

C14

Sch. 24 applied (with modifications) (1.5.2023) by The Value Added Tax (Margin Schemes and Removal or Export of Goods: VAT-related Payments) Order 2023 (S.I. 2023/68), arts. 1(1), 14 (with art. 1(2))

C15

Sch. 24 applied (14.9.2023) by The Public Service Pension Schemes (Rectification of Unlawful Discrimination) (Tax) (No. 2) Regulations 2023 (S.I. 2023/912), regs. 1(2), 40(2) (with reg. 1(3))

C16

Sch. 24 applied (24.4.2025 for the tax year 2023-24 and subsequent tax years) by The Public Service Pension Schemes (Rectification of Unlawful Discrimination) (Tax) Regulations 2025 (S.I. 2025/419), regs. 1(2)(3), 15(3)

Notes on Part 2

Modifications

C1

Sch. 24 excluded (17.7.2014) by Finance Act 2014 (c. 26), Sch. 35 para. 13(a)