# Finance (No. 2) Act 2023, Paragraph 49


(1) If HMRC thinks it right because of special circumstances, HMRC may reduce the penalty.
(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 one taxpayer is balanced by a potential over-payment by another.
(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 in respect of a penalty.

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Source: https://www.legislation.gov.uk/ukpga/2023/30/schedule/14/paragraph/49 (the official version)
Page: https://openlegislation.uk/finance-no-2-act-2023/schedule-14/paragraph-49
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.