Paragraph 6A F1
HMRC may cancel a penalty point awarded under paragraph 6.
Where HMRC cancel a penalty point after a notice under paragraph 6(2) in respect of the penalty point is given, they must notify the person and, in the notice—
state the failure (or failures) in respect of which the penalty point was awarded, and
include sufficient information for the person to be able to identify the group of returns for which the penalty point was awarded.
Where HMRC cancel a penalty point before a notice under paragraph 6(2) in respect of the penalty point is given, HMRC is not required to give the notice under paragraph 6(2).
Where HMRC cancel a penalty point, any assessment of a penalty under this Schedule for which the person is liable by virtue of the penalty point ceases to have effect (and is to be taken as never having had any effect).
The cancellation of a penalty point does not prevent HMRC from subsequently awarding a penalty point for the failure (or failures) in respect of which the cancelled penalty point was awarded.
Sub-paragraph (7) applies if—
HMRC cancel a penalty point,
after that penalty point was given by HMRC and before it was cancelled, the person failed to make a return on or before the due date, and
at the time the failure occurred, the person already had the maximum number of penalty points for the 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 HMRC cancel the penalty point (and paragraph 6(3) does not apply).
Annotations
Textual amendments
- F1
Sch. 24 para. 6A and cross-heading inserted (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(3)