Paragraph 39 F1
A person who fails to comply with a duty imposed by a provision of Part 1 of this Schedule mentioned in the first column of the table is liable to a penalty not exceeding the amount specified in relation to that provision in the second column.
| Provision | Maximum penalty amount |
|---|---|
| Paragraph 11(1) or 12(1) (promoter’s duty to notify) | The applicable rate for each day on which the person fails to comply or, if sub-paragraph (3) applies, £1 million |
| Paragraph 17(2) (client’s duty to notify: no UK promoter) | The applicable rate for each day on which the person fails to comply or, if sub-paragraph (3) applies, £1 million |
| Paragraph 18(2) (client’s duty to notify: no promoter) | The applicable rate for each day on which the person fails to comply or, if sub-paragraph (3) applies, £1 million |
| Paragraph 19 (duty to provide further information) | The applicable rate for each day on which the person fails to comply or, if sub-paragraph (3) applies, £1 million |
| Paragraph 21 (promoter’s duty to update information) | £5,000 |
| Paragraph 22C (duty to provide further information: paragraph 22(3) case) | The applicable rate for each day on which the person fails to comply or, if sub-paragraph (3) applies, £1 million |
| Paragraph 23(2) (promoter’s duty to notify client of SRN) | £5,000 |
| Paragraph 23A(2) (duty to notify client of SRN: paragraph 22(3) case) | £5,000 |
| Paragraph 24(3) (client’s duty to notify other persons of SRN) | £5,000 |
| Paragraph 25(2) (client’s duty to provide client information to promoter or service provider) | £5,000 |
| Paragraph 26(1) or regulations under paragraph 26(3) (other party’s duty to provide information) | The amount specified in sub-paragraph (4) |
| Paragraph 27(3) (promoter’s or service provider’s duty to provide client information) | £5,000 |
| Paragraph 28 (service provider’s duty to provide other party’s information) | £5,000 |
| Paragraph 29 (duty to provide statement on notifiability) | £5,000 |
| Paragraph 30 (duty to provide supporting evidence on notifiability) | £5,000 |
| Paragraph 31 (introducer’s duty to provide other person’s information) | £5,000 |
| Paragraph 33 (duty to provide information in addition to SRN to client or other persons) | £5,000 |
The “applicable rate” means—
£600, or
where an order has been made under paragraph 4 or 5 (orders about notifiability) in respect of the arrangements or proposal in relation to which the person fails to comply—
£600 for each day falling before the end of the period of eleven days beginning with the day on which the order was made, and
£5,000 for each day falling after the end of that period.
This sub-paragraph applies where an authorised officer considers that the amount otherwise specified in relation to the provision is inappropriately low.
The amount specified for paragraph 26(1) or regulations under paragraph 26(3) is—
£10,000, if the person has failed to comply with the paragraph or regulations on two or more other occasions during the period of 36 months ending with the date of the current failure,
£7,500, if the person has failed to comply with the paragraph or regulations on one other occasion during the period of 36 months ending with the date of the current failure, or
£5,000, in any other case.
In sub-paragraph (1), a reference to a day on which a person fails to comply with a duty is a reference to a day that—
begins after the day by which the person was required to comply with the duty, and
ends before the earlier of—
the day on which the person complies with the duty,
the day on which any reference number is allocated to the arrangements or proposed arrangements concerned in the circumstances described in sub-paragraph (6), and
the day on which a penalty under sub-paragraph (1) is imposed in relation to the failure.
The circumstances are—
the duty referred to in sub-paragraph (5) is a duty imposed by paragraph 11(1), 12(1), 17(2) or 18(2), and
it is a case within paragraph 22(3).
In this paragraph “authorised officer” means an officer of Revenue and Customs authorised by HMRC for the purposes of this paragraph.
Annotations
Textual amendments
- F1
Sch. 17 paras. 39-42 substituted for Sch. 17 paras. 39-44 (18.3.2026) by Finance Act 2026 (c. 11), s. 216(3)(b) (with s. 219)
Notes on Schedule 17
Modifications
- C1
Sch. 17 modified (17.12.2020 for specified purposes, 31.12.2020 in so far as not already in force) by 1994 c. 23, Sch. 9ZA para. 80 (as inserted by Taxation (Post-transition Period) Act 2020 (c. 26), s. 11(1)(e), Sch. 2 para. 2 (with s. 3(4), Sch. 2 para. 7(7)-(10)); S.I. 2020/1642, reg. 9)
Notes on Penalty for failure to comply with duties under Part 1 ...
Textual amendments
- F1
Words in Sch. 17 para. 39 cross-heading omitted (18.3.2026) by virtue of Finance Act 2026 (c. 11), s. 216(3)(a) (with s. 219)