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Paragraph 8 I1I2I3

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

(1)

Each of a person's penalty points for a group of returns expires

F1(a)

at the beginning of the first day on which both condition A and condition B are met F2, or

(b)

if HMRC notify the person before that time that HMRC have decided the points should expire, at the beginning of the day specified in the notice (which may be before the day on which the notice is given).

(2)

Condition A is that the person has made each return in the group on or before its due date for the relevant length of time (or longer).

(3)

The relevant length of time is x months beginning with the first day of the month after the month in which the most recent failure to make a return in the group on or before its due date occurred.

(4)

In sub-paragraph (3) “x months” means—

(a)

if the group of returns is in Column A of the Table, 24 months,

(b)

if the group of returns is in Column B of the Table, 12 months, and

(c)

if the group of returns is in Column C of the Table, 6 months.

(5)

Condition B is met on any day if the person has made all the returns in the group whose due date fell in the period of 24 months ending with the previous day (whether or not those returns were made on or before their due date).

(6)

Where each of a person's penalty points for a group of returns expires under F3paragraph (1)(a), HMRC must notify the person.

F4(7)

For the purposes of this paragraph, where—

(a)

a person fails to make a return, and

(b)

by virtue of paragraph 19(1) (reasonable excuse) no liability to a penalty point or penalty in respect of the failure arises under this Schedule,

the person is to be treated as if they made the return on or before the due date.

Annotations

Textual amendments

F1

Words in Sch. 24 para. 8(1) renumbered as Sch. 24 para. 8(1)(a) (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)(b) of the amending Act) by Finance Act 2026 (c. 11), s. 262(4)(a)(i)

F2

Sch. 24 para. 8(1)(b) and word 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)(b) of the amending Act) by Finance Act 2026 (c. 11), s. 262(4)(a)(ii)

F3

Words in Sch. 24 para. 8(6) 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)(b) of the amending Act) by Finance Act 2026 (c. 11), s. 262(4)(b)

F4

Sch. 24 para. 8(7) inserted (18.3.2026 with retrospective effect for the purposes for which the amended provision is in force immediately before 1.4.2026 and for all other purposes at the same time as the amended provision comes into force for those purposes) by Finance Act 2026 (c. 11), s. 262(4)(c)(7)(a)(9)

Commencement

I1

Sch. 24 para. 8 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(1)

I2

Sch. 24 para. 8 in force at 6.4.2024 for specified purposes by S.I. 2024/440, reg. 2(1)

I3

Sch. 24 para. 8 in force at 1.4.2026 for specified purposes by S.I. 2026/370, reg. 3(1)