Paragraph 26B F1

(1)

Sub-paragraph (2) applies where—

(a)

a person is liable to a penalty under paragraph 26, and

(b)

in the period of 20 years ending with the day on which the person became liable to the penalty, the person has been assessed to a penalty under that paragraph on more than 1, but fewer than 6, occasions.

(2)

Paragraph 26 applies in relation to the penalty mentioned in sub-paragraph (1)(a) as if—

(a)

each reference to 70% of the potential lost revenue were a reference to 85% of the potential lost revenue, and

(b)

the reference in sub-paragraph (3) to £1,000,000 were a reference to £5,000,000.

(3)

Sub-paragraph (4) applies where—

(a)

a person is liable to a penalty under paragraph 26, and

(b)

in the period of 20 years ending with the day on which the person became liable to the penalty, the person has been assessed to a penalty under that paragraph on 6 or more occasions.

(4)

Paragraph 26 applies in relation to the penalty mentioned in sub-paragraph (3)(a) as if—

(a)

each reference to 70% of the potential lost revenue were a reference to 100% of the potential lost revenue, and

(b)

sub-paragraph (3) (maximum amount) were omitted.

(5)

For the purposes of sub-paragraphs (1)(b) and (3)(b), a penalty under paragraph 26 is not to be taken into account if—

(a)

the person was assessed to the penalty more than 4 years before the day mentioned in sub-paragraph (1)(b) or (3)(b) (as the case may be), and

(b)

in the period of 4 years after the penalty was assessed, the person was not assessed to another such penalty.

(6)

Where—

(a)

a penalty under paragraph 26 is not to be taken into account in accordance with sub-paragraph (5), and

(b)

the person had previously been assessed to one or more other penalties under paragraph 26,

those previous penalties are also not to be taken into account for the purposes of sub-paragraphs (1)(b) and (3)(b).

(7)

For the purposes of sub-paragraphs (1)(b) and (3)(b), if a person is assessed to a penalty under paragraph 26 and the penalty is, at any time, subsequently set aside or otherwise cancelled, the penalty is to be treated from that time as if it was not assessed on the person.

Annotations

Textual amendments

F1: Sch. 38 paras. 26-26C and cross-headings substituted for Sch. 38 para. 26 and cross-heading (1.4.2026) by Finance Act 2026 (c. 11), s. 250(2), Sch. 22 para. 18

Notes on Schedule 38

Textual amendments

F1: Sch. 38 heading substituted (1.4.2026) by Finance Act 2026 (c. 11), s. 250(2), Sch. 22 para. 2

Modifications

C1: Sch. 38 applied by S.I. 2009/470, reg. 33(1) (as substituted (6.4.2013) by The Education (Student Loans) (Repayment) (Amendment) Regulations 2013 (S.I. 2013/607), regs. 1(1), 9)
C2: Sch. 38 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(2)
C3: Sch. 38 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), 43(1)
C4: Sch. 38 applied (with application in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment and Application of Schedule 38 to the Finance Act 2012) Regulations 2013 (S.I. 2013/622), regs. 1, 41 (as amended (1.4.2026) by Finance Act 2026 (c. 11), s. 250(2), Sch. 22 para. 35)

Notes on Part 4

Textual amendments

F1: Word in Sch. 38 Pt. 4 heading substituted (1.4.2026) by Finance Act 2026 (c. 11), s. 250(2), Sch. 22 para. 17