# Finance Act 2009, Paragraph 15

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

(1) Where a person who would otherwise be liable to a 100% penalty has made an unprompted disclosure, HMRC must reduce the 100% to a percentage, not below 30%, which reflects the quality of the disclosure.
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) Where a person who would otherwise be liable to a 100% penalty has made a prompted disclosure, HMRC must reduce the 100% to a percentage, not below 50%, which reflects the quality of the disclosure.
But the standard percentage may not be reduced to a percentage that is below the minimum shown for it—
(a) in the case of a prompted disclosure, in column 2 of the Table, and
(b) in the case of an unprompted disclosure, in column 3 of the Table.
Standard %
Minimum % for prompted disclosure
Minimum % for unprompted disclosure
70%
35%
20%
100%
50%
30%
(3) Where a person who would otherwise be liable to a 70% penalty has made an unprompted disclosure, HMRC must reduce the 70% to a percentage, not below 20%, which reflects the quality of the disclosure.
(4) Where a person who would otherwise be liable to a 70% penalty has made a prompted disclosure, HMRC must reduce the 70% to a percentage, not below 35%, which reflects the quality of the disclosure.
(5) But HMRC must not under this paragraph—
(a) reduce a penalty under paragraph 6(3) or (4) below £300, or
(b) reduce a penalty under paragraph 11(3) or (4)sub-paragraph (3) or (4) of any of paragraphs 11, 13E and 13J below the amount set by paragraph 11(3)(b) or (4)(b) (as the case may be)paragraph (b) of that sub-paragraph.

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Source: https://www.legislation.gov.uk/ukpga/2009/10/schedule/55/paragraph/15 (the official version)
Page: https://openlegislation.uk/finance-act-2009/schedule-55/paragraph-15
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.