Section 212 Aggregate penalties

United Kingdom

(1)

Subsection (2) applies where—

(a)

two or more penalties are incurred by the same person and fall to be determined by reference to an amount of tax to which that person is chargeable,

(b)

one of those penalties is incurred under section 208, and

(c)

one or more of the other penalties are incurred under a relevant penalty provision.

(2)

The aggregate of the amounts of the penalties mentioned in subsection (1)(b) and (c) F1and any penalty under section 208A that is additional to the penalty mentioned in subsection (1)(b), so far as determined by reference to that amount of tax, must not exceed—

(a)

the relevant percentage of that amount, or

(b)

in a case where at least one of the penalties is under paragraph 5(2)(b) or 6(3)(b), (4)(b) or (5)(b) of Schedule 55 to FA 2009 F2or paragraph 3(3)(b) or (5)(b) or 20(4) of Schedule 25 to FA 2021, £300 (if greater).

(3)

In the application of section 97A of TMA 1970 (multiple penalties), no account is to be taken of a penalty under section 208 F3or 208A.

(4)

“Relevant penalty provision” means—

(a)

Schedule 24 to FA 2007 (penalties for errors),

(b)

Schedule 41 to FA 2008 (penalties: failure to notify etc), F4...

(c)

Schedule 55 to FA 2009 (penalties for failure to make returns etc) F5, F6...

(d)

Part 5 of Schedule 18 to FA 2016 (serial tax avoidance) F7, ~~F8or~~

(e)

section 212A of FA 2013 (general anti-abuse rule).F9, or

(f)

Schedule 25 to FA 2021 (penalties for deliberately withholding information).

(5)

“The relevant percentage” means—

(a)

200% in a case where at least one of the penalties is determined by reference to the percentage in—

(i)

paragraph 4(4)(c) of Schedule 24 to FA 2007,

(ii)

paragraph 6(4)(a) of Schedule 41 to FA 2008, ~~F10or~~

(iii)

paragraph 6(3A)(c) of Schedule 55 to FA 2009, F11or

(iv)

paragraph 3(4)(c) of Schedule 25 to FA 2021,

(b)

150% in a case where paragraph (a) does not apply and at least one of the penalties is determined by reference to the percentage in—

(i)

paragraph 4(3)(c) of Schedule 24 to FA 2007,

(ii)

paragraph 6(3)(a) of Schedule 41 to FA 2008, ~~F12or~~

(iii)

paragraph 6(3A)(b) of Schedule 55 to FA 2009, F13or

(iv)

paragraph 3(4)(b) of Schedule 25 to FA 2021,

(ba)

F14125% in a case where neither paragraph (a) nor paragraph (b) applies and at least one of the penalties is determined by reference to the percentage in—

(i)

paragraph 4(2)(c) of Schedule 24 to FA 2007,

(ii)

paragraph 6(2)(a) of Schedule 41 to FA 2008, or

(iii)

paragraph 6(3A)(a) of Schedule 55 to FA 2009,

(c)

140% in a case where F15none of paragraphs (a) to (ba) applies and at least one the penalties is determined by reference to the percentage in—

(i)

paragraph 4(4)(b) of Schedule 24 to FA 2007,

(ii)

paragraph 6(4)(b) of Schedule 41 to FA 2008,

(iii)

paragraph 6(4A)(c) of Schedule 55 to FA 2009, F16or

(iv)

paragraph 3(6)(c) of Schedule 25 to FA 2021,

(d)

105% in a case where F17none of paragraphs (a) to (c) applies and at least one of the penalties is determined by reference to the percentage in—

(i)

paragraph 4(3)(b) of Schedule 24 to FA 2007,

(ii)

paragraph 6(3)(b) of Schedule 41 to FA 2008,

(iii)

paragraph 6(4A)(b) of Schedule 55 to FA 2009, ~~F18and~~ or

(iv)

paragraph 3(6)(b) of Schedule 25 to FA 2021, and

(e)

in any other case, 100%.

Annotations

Textual amendments

F1: Words in s. 212(2) inserted (with effect in accordance with Sch. 28 para. 15 of the amending Act) by Finance Act 2021 (c. 26), Sch. 28 para. 5(2)
F2: Words in s. 212(2)(b) inserted (6.4.2024 for specified purposes, 1.4.2026 for specified purposes) by Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 43(a); S.I. 2024/440, reg. 2; S.I. 2026/370, reg. 3
F3: Words in s. 212(3) inserted (with effect in accordance with Sch. 28 para. 15 of the amending Act) by Finance Act 2021 (c. 26), Sch. 28 para. 5(3)
F4: Word in s. 212(4)(b) omitted (with effect in accordance with Sch. 18 para. 63 of the amending Act) by virtue of Finance Act 2016 (c. 24), Sch. 18 para. 60(a)
F5: S. 212(4)(d) and preceding word inserted (with effect in accordance with Sch. 18 para. 63 of the amending Act) by Finance Act 2016 (c. 24), Sch. 18 para. 60(b)
F6: Word in s. 212(4)(c) omitted (with effect in accordance with s. 158(15) of the amending Act) by virtue of Finance Act 2016 (c. 24), s. 158(11)(a)
F7: S. 212(4)(e) and preceding word inserted (with effect in accordance with s. 158(15) of the amending Act) by Finance Act 2016 (c. 24), s. 158(11)(b)
F8: Word in s. 212(4)(d) omitted (6.4.2024 for specified purposes, 1.4.2026 for specified purposes) by virtue of Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 43(b)(i); S.I. 2024/440, reg. 2; S.I. 2026/370, reg. 3
F9: S. 212(4)(f) and word inserted (6.4.2024 for specified purposes, 1.4.2026 for specified purposes) by Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 43(b)(ii); S.I. 2024/440, reg. 2; S.I. 2026/370, reg. 3
F10: Word in s. 212(5)(a)(ii) omitted (6.4.2024 for specified purposes, 1.4.2026 for specified purposes) by virtue of Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 43(c)(i); S.I. 2024/440, reg. 2; S.I. 2026/370, reg. 3
F11: S. 212(5)(a)(iv) and word inserted (6.4.2024 for specified purposes, 1.4.2026 for specified purposes) by Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 43(c)(ii); S.I. 2024/440, reg. 2; S.I. 2026/370, reg. 3
F12: Word in s. 212(5)(b)(ii) omitted (6.4.2024 for specified purposes, 1.4.2026 for specified purposes) by virtue of Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 43(c)(iii); S.I. 2024/440, reg. 2; S.I. 2026/370, reg. 3
F13: S. 212(5)(b)(iv) and word inserted (6.4.2024 for specified purposes, 1.4.2026 for specified purposes) by Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 43(c)(iv); S.I. 2024/440, reg. 2; S.I. 2026/370, reg. 3
F14: S. 212(5)(ba) inserted by 2015 c. 11, Sch. 20 para. 21(2) (as inserted by Finance Act 2021 (c. 26), Sch. 28 para. 14)
F15: Words in s. 212(5)(c) substituted (10.6.2021) by 2015 c. 11, Sch. 20 para. 21(3) (as inserted by Finance Act 2021 (c. 26), Sch. 28 para. 14)
F16: S. 212(5)(c)(iv) and word inserted (6.4.2024 for specified purposes, 1.4.2026 for specified purposes) by Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 43(c)(v); S.I. 2024/440, reg. 2; S.I. 2026/370, reg. 3
F17: Words in s. 212(5)(d) substituted (10.6.2021) by 2015 c. 11, Sch. 20 para. 21(4) (as inserted by Finance Act 2021 (c. 26), Sch. 28 para. 14)
F18: Words in s. 212(5)(d) substituted (6.4.2024 for specified purposes, 1.4.2026 for specified purposes) by Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 43(c)(vi); S.I. 2024/440, reg. 2; S.I. 2026/370, reg. 3