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Paragraph 13 I1F1

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

  • Sch. 41 para. 6(2)(b) word substituted by Finance Act 2015 Sch. 20 para. 10(3)(b)
  • Sch. 41 para. 6(1A) inserted by Finance Act 2015 Sch. 20 para. 10(2)
  • Sch. 41 para. 6(2)(a) word substituted by Finance Act 2015 Sch. 20 para. 10(3)(a)
  • Sch. 41 para. 6(2)(c) word substituted by Finance Act 2015 Sch. 20 para. 10(3)(c)
  • Sch. 41 para. 6(5) word substituted by Finance Act 2015 Sch. 20 para. 10(4)
  • Sch. 41 para. 6A(A1)(1) substituted for Sch. 41 para. 6A(1) by Finance Act 2015 Sch. 20 para. 11(2)
  • Sch. 41 para. 13(3) Table words inserted by Finance Act 2015 Sch. 20 para. 13
(1)

If a person who would otherwise be liable to a penalty of a percentage shown in column 1 of the Table (a “standard percentage”) has made a disclosure, HMRC must reduce the standard percentage to one that reflects the quality of the disclosure.

(2)

But the standard percentage may not be reduced to a percentage that is below the minimum shown for it—

(a)

for a prompted disclosure, in column 2 of the Table, and

(b)

for an unprompted disclosure, in column 3 of the Table.

(3)

Where the Table shows a different minimum for case A and case B—

(a)

the case A minimum applies if—

(i)

the penalty is one under paragraph 1, and

(ii)

HMRC become aware of the failure less than 12 months after the time when the tax first becomes unpaid by reason of the failure, and

(b)

otherwise, the case B minimum applies.

F2Standard %Minimum % for prompted disclosureMinimum % for unprompted disclosure
30%

case A: 10%

case B: 20%

case A: 0%

case B: 10%

70%35%20%
100%50%30%

Annotations

Textual amendments

F1

Sch. 41 para. 13 substituted (6.4.2011) by Finance Act 2010 (c. 13), s. 35(2), Sch. 10 para. 9; S.I. 2011/975, art. 2(1) (with art. 4)

F2

Sch. 41 para. 13(3) Table substituted (with effect in accordance with reg. 2 of the commencing S.I.) by Finance Act 2016 (c. 24), s. 163(2), Sch. 21 para. 7; S.I. 2017/259, reg. 2

Commencement

I1

Sch. 41 para. 13 in force at 1.4.2010 with effect in accordance with art. 3 by S.I. 2009/511, art. 2

Notes on Schedule 41

Modifications

C1

Sch. 41 modified (with effect in accordance with s. 42(2), Sch. 12 para. 29(1) of the amending Act) by Finance Act 2018 (c. 3), Sch. 12 paras. 33, 34

C2

Sch. 41 applied (with modifications) (22.7.2020) by Finance Act 2020 (c. 14), Sch. 16 para. 11(6) (with Sch. 16 para. 11(7))

C3

Sch. 41 applied (with modifications) (22.7.2020) by Finance Act 2020 (c. 14), Sch. 16 para. 13