# Income Tax (Earnings and Pensions) Act 2003, Paragraph 28H


(1) This paragraph applies if HMRC decide—
(a) that requirements of Parts 2 to 6 of this Schedule—
(i) are not met in relation to the scheme, or
(ii) have not been met in relation to the scheme, and
(b) that the situation is, or was, so serious that this paragraph should apply.
(2) If this paragraph applies—
(a) the scheme is not to be a Schedule 4 CSOP scheme with effect from—
(i) such relevant time as is specified in the closure notice, or
(ii) if no relevant time is specified, the time of the giving of the closure notice, and
(b) the scheme organiser is liable for a penalty of an amount decided by HMRC.
(3) The penalty under sub-paragraph (2)(b) must not exceed an amount equal to twice HMRC's reasonable estimate of—
(a) the total income tax for which persons who have been granted share options under the scheme have not been liable, or will not be liable in the future, and
(b) the total contributions under Part 1 of SSCBA 1992 or SSCB(NI)A 1992 for which any persons have not been liable, or will not be liable in the future,
in consequence of the scheme having been a Schedule 4 CSOP scheme at any relevant time before the time mentioned in sub-paragraph (2)(a)(i) or (ii) (as the case may be).
(4) In this paragraph “relevant time” means any time before the giving of the closure notice when requirements of Parts 2 to 6 of this Schedule were not met in relation to the scheme.

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Source: https://www.legislation.gov.uk/ukpga/2003/1/schedule/4/paragraph/28H (the official version)
Page: https://openlegislation.uk/income-tax-earnings-and-pensions-act-2003/schedule-4/paragraph-28H
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.