Paragraph 1

(1)

A penalty is payable by a person (“P”) where Conditions A, B and C are met.

(2)

Condition A is that—

(a)

P is liable for a penalty specified in paragraph 2 (“the original penalty”), and

(b)

F1where the original penalty is a penalty specified in paragraph (a), (b), (c) or (d) of paragraph 2, the original penalty is for a deliberate failure (see paragraph 3).

(3)

Condition B is that there is a relevant offshore asset move (see paragraph 4) which occurs after the relevant time (see paragraph 5).

(4)

Condition C is that—

(a)

the main purpose, or one of the main purposes, of the relevant offshore asset move is to prevent or delay the discovery by Her Majesty's Revenue and Customs (“HMRC”) of a potential loss of revenue, and

(b)

the original penalty relates to an inaccuracy or failure which relates to the same potential loss of revenue.

Annotations

Textual amendments

F1: Words in Sch. 21 para. 1(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. 44(2); S.I. 2024/440, reg. 2; S.I. 2026/370, reg. 3