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Paragraph 40 Penalties payable in connection with this Schedule

United Kingdom

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

(1)

But a penalty is not payable under paragraph 38 or 39 if—

(a)

P satisfies an officer of Revenue and Customs or, on appeal, the tribunal that there is a reasonable excuse for the failure, or

(b)

the penalty would subject P to double jeopardy.

(2)

For the purpose of sub-paragraph (1)(a)—

(a)

an insufficiency of funds is not a reasonable excuse,

(b)

where P relies on any other person to do anything, that is not a reasonable excuse unless P took reasonable care to avoid the failure, and

(c)

where P had a reasonable excuse for the failure but the excuse has ceased, P is to be treated as having continued to have the excuse only if the failure is remedied without unreasonable delay after the excuse ceased.

(3)

For the purpose of sub-paragraph (1)(b), the penalty would subject P to double jeopardy if, by reason of the conduct constituting the failure, P has been—

(a)

convicted of an offence, or

(b)

assessed to a penalty other than under paragraph 38 or 39.