Paragraph 24 I1I2I3
On an appeal under paragraph 22 that is notified to the tribunal, the tribunal may—
where the appeal is under paragraph 22(a), affirm or cancel HMRC's decision that the person is liable to the penalty point;
where the appeal is under paragraph 22(b), affirm or cancel HMRC's decision that the penalty is payable by the person.
Where the appeal is under paragraph 22(b), the tribunal may also affirm or cancel HMRC's decision that the person was liable to any of the penalty points by virtue of which the person was liable to the penalty.
Sub-paragraph (2)—
applies in relation to a penalty point even if the time limit for appealing against it expired before the appeal under paragraph 22(b) was brought;
does not apply in relation to a penalty point if HMRC's decision that the person was liable to the penalty point was affirmed on an earlier appeal.
Sub-paragraph (5) applies if—
on an appeal under paragraph 22(b), the tribunal—
cancels a decision that a penalty is payable by a person, and
cancels a decision that the person was liable to a penalty point F1... by virtue of which the person was liable to the penalty,
after the penalty point mentioned in paragraph (a)(ii) was given by HMRC and before the decision mentioned in that paragraph was cancelled, the person failed to make a return F2... on or before the due date, and
at the time the failure occurred, the person already had the maximum number of penalty points for F3the group of returns to which that return belongs (see paragraph 5(8)).
HMRC may award a penalty point in respect of the failure before the end of the period of 12 months beginning with the day after the tribunal's decision on the appeal (and paragraph 6(3) does not apply).
In this paragraph “tribunal” means the First-tier Tribunal or Upper Tribunal (as appropriate by virtue of paragraph 23(1)).
Annotations
Textual amendments
- F1
Words in Sch. 24 para. 24(4)(a)(ii) omitted (1.4.2026 for the purposes for which the amended provision is in force immediately before that date and for all other purposes at the same time as the amended provision comes into force for those purposes and with effect in accordance with s. 262(8)(a) of the amending Act) by virtue of Finance Act 2026 (c. 11), s. 262(6)(a)
- F2
Words in Sch. 24 para. 24(4)(b) omitted (1.4.2026 for the purposes for which the amended provision is in force immediately before that date and for all other purposes at the same time as the amended provision comes into force for those purposes and with effect in accordance with s. 262(8)(a) of the amending Act) by virtue of Finance Act 2026 (c. 11), s. 262(6)(b)
- F3
Words in Sch. 24 para. 24(4)(c) substituted (1.4.2026 for the purposes for which the amended provision is in force immediately before that date and for all other purposes at the same time as the amended provision comes into force for those purposes and with effect in accordance with s. 262(8)(a) of the amending Act) by Finance Act 2026 (c. 11), s. 262(6)(c)
Modifications
- C1
Sch. 24 para. 24(4)(5) applied (with modifications) (with effect in accordance with s. 158 of the amending Act) by Finance Act 2026 (c. 11), s. 158, Sch. 17 para. 56
- C2
Sch. 24 para. 24(4)(5) applied (with modifications) (1.1.2023 for specified purposes, 6.4.2024 for specified purposes, 1.4.2026 for specified purposes) by 1994 c. 23, s. 83FB (as inserted by Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 26; S.I. 2022/1278, reg. 2(3)(4)(a); S.I. 2024/440, reg. 2; S.I. 2026/370, reg. 3)
- C3
Sch. 24 para. 24(4)(5) applied (with modifications) (6.4.2024 for specified purposes, 1.4.2026 for specified purposes) by 1970 c. 9, s. 49FA(1) (as inserted by Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 6; S.I. 2024/440, reg. 2; S.I. 2026/370, reg. 3)
Commencement
- I1
Sch. 24 para. 24 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(1)
- I2
Sch. 24 para. 24 in force at 6.4.2024 for specified purposes by S.I. 2024/440, reg. 2(1)
- I3
Sch. 24 para. 24 in force at 1.4.2026 for specified purposes by S.I. 2026/370, reg. 3(1)