# Finance Act 2016, Paragraph 9


(1) If they think it right because of special circumstances, HMRC may reduce a penalty under paragraph 1.
(2) In sub-paragraph 1 “special circumstances” does not include—
(a) ability to pay, or
(b) the fact that a potential loss of revenue from one taxpayer is balanced by a potential overpayment by another.
(3) In sub-paragraph (1) the reference to reducing a penalty includes a reference to—
(a) staying a penalty, or
(b) agreeing a compromise in relation to proceedings for a penalty.

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Source: https://www.legislation.gov.uk/ukpga/2016/24/schedule/20/paragraph/9 (the official version)
Page: https://openlegislation.uk/finance-act-2016/schedule-20/paragraph-9
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.