Paragraph 13 I1 I2 I3 I4 I5

(1)

If HMRC think it right because of special circumstances, they may reduce a penalty under this Schedule.

(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 a taxpayer is balanced by a potential over-payment by a taxpayer.

(3)

In sub-paragraph (1) the reference to reducing a penalty includes a reference to—

(a)

staying a penalty, and

(b)

agreeing a compromise in relation to proceedings for a penalty.

Annotations

I1: Sch. 26 para. 13 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(2)
I2: Sch. 26 para. 13 in force at 6.4.2024 for specified purposes by S.I. 2024/440, reg. 2(2)
I3: Sch. 26 para. 13 in force at 12.11.2024 for specified purposes by S.I. 2024/1132, reg. 2
I4: Sch. 26 para. 13 in force at 28.3.2025 for specified purposes by S.I. 2025/399, reg. 2
I5: Sch. 26 para. 13 in force at 1.4.2026 for specified purposes by S.I. 2026/370, reg. 3(2)

C1: Sch. 26 modified (1.3.2024) by 1994 c. 23, Sch. 9ZF para. 13A (as inserted by The Value Added Tax (Distance Selling) (Amendments) Regulations 2024 (S.I. 2024/128), regs. 1(1), 6(6) (with reg. 1(2)))
C2: Sch. 26 applied (1.4.2026) by S.I. 2009/470, reg. 36(2) (as inserted by The Education (Student Fees, Awards, Support and Loan Repayments) (Amendment) Regulations 2026 (S.I. 2026/130), regs. 1(4), 34(b))