Regulation 1 Citation, commencement and effect

(1)

These Regulations may be cited as the Finance Act 2021 (Increase in Schedule 26 Penalty Percentages) Regulations 2025.

(2)

These Regulations come into force on 31st May 2025.

(3)

These Regulations have effect in relation to a failure to pay the tax due where the specified date^f1 is on or after 31st May 2025, unless—

(a)

the tax due is income tax or capital gains tax that is payable in respect of the tax year 2024-25^f2 or an earlier tax year, or

(b)

the tax due is value added tax that—

(i)

is payable by reference to a prescribed accounting period that began before 1st April 2025, or

(ii)

has been assessed under sections 80 (4A) or 80B of the Value Added Tax Act 1994 (recovery of excess credit)^f3 in relation to value added tax payable by reference to a prescribed accounting period that began before 1st April 2025.

(4)

In this regulation “prescribed accounting period” has the same meaning as in the Value Added Tax Act 1994^f4.

Annotations

Footnotes

f1: See paragraph 1 of Schedule 26 to the Finance Act 2021 for the meaning of “the tax due” and “the specified date”.
f2: See section 4(2) and (4) of the Income Tax Act 2007 (c. 3) for the meaning of the expression “tax year” and “the tax year 2024-25” for the purposes of the Income Tax Acts (by virtue of section 989 of that Act) and section 288(1ZA) of the Taxation of Chargeable Gains Act 1992 (c. 12) for the meaning of those expressions for the purposes of enactments relating to capital gains tax.
f3: 1994 c. 23. Section 80(4A) was inserted by section 47(6) of the Finance Act 1997 (c. 16) and substituted by section 3(9) of the Finance (No. 2) Act 2005 (c. 22). Section 80B was inserted by section 46 (2) of the Finance Act 1997 and amended by section 4(4) of the Finance (No. 2) Act 2005 and by article 3 (11) of S.I. 2022/1298.
f4: See section 25(1) of the Value Added Tax Act 1994.