(1)This section applies where a person (“the taxpayer”) fails to deliver an account under section 216 or 217 above.
(2)The taxpayer shall be liable—
(a)to a penalty not exceeding £100; and
(b)to a further penalty not exceeding £60 for every day after the day on which the failure has been declared by a court or the Special Commissioners and before the day on which the account is delivered.
(3)If—
(a)proceedings in which the failure could be declared are not commenced before the end of the relevant period, and
(b)the taxpayer has not delivered the account by the end of that period,
he shall be liable to a further penalty not exceeding £100.
(4)In subsection (3) above “the relevant period” means the period of six months beginning immediately after the end of the period given by section 216(6) or (7) or section 217 above (whichever is applicable).
(5)If the taxpayer proves that his liability to tax does not exceed a particular amount, the penalty under subsection (2)(a) above, together with any penalty under subsection (3) above, shall not exceed that amount.
(6)A person shall not be liable to a penalty under subsection (2)(b) above if he delivers the account required by section 216 or 217 before proceedings in which the failure could be declared are commenced.
(7)A person who has a reasonable excuse for failing to deliver an account shall not be liable by reason of that failure to a penalty under this section, unless he fails to deliver the account without unreasonable delay after the excuse has ceased.]
Textual Amendments
F1Ss. 245, 245A substituted for s. 245 (27.7.1999 with effect as mentioned in s. 108(3) of the amending Act) by 1999 c. 16, s. 108(1)(3)
(1)A person who fails to make a return under section 218 above shall be liable—
(a)to a penalty not exceeding £300; and
(b)to a further penalty not exceeding £60 for every day after the day on which the failure has been declared by a court or the Special Commissioners and before the day on which the return is made.
(2)A person who fails to comply with a notice under section 219 above shall be liable—
(a)to a penalty not exceeding £300; and
(b)to a further penalty not exceeding £60 for every day after the day on which the failure has been declared by a court or the Special Commissioners and before the day on which the notice is complied with.
(3)A person who fails to comply with a notice under section 219A(1) or (4) above shall be liable—
(a)to a penalty not exceeding £50; and
(b)to a further penalty not exceeding £30 for every day after the day on which the failure has been declared by a court or the Special Commissioners and before the day on which the notice is complied with.
(4)A person shall not be liable to a penalty under subsection (1)(b), (2)(b) or (3)(b) above if—
(a)he makes the return required by section 218 above,
(b)he complies with the notice under section 219 above, or
(c)he complies with the notice under section 219A(1) or (4) above,
before proceedings in which the failure could be declared are commenced.
(5)A person who has a reasonable excuse for failing to make a return or to comply with a notice shall not be liable by reason of that failure to a penalty under this section, unless he fails to make the return or to comply with the notice without unreasonable delay after the excuse has ceased.
Textual Amendments
F2S. 245, 245(A) substituted for s. 245 by (27.7.1999 with effect as mentioned in s. 108(3) of the amending Act) by 1999 c. 16, s. 108(1)(3)
Textual Amendments
F3S. 246 repealed (1.9.1994) by S.I. 1994/1813, reg. 2(1), Sch. 1 para. 20, Sch. 2 Pt. I
(1)If any person liable for any tax on the value transferred by a chargeable transfer fraudulently or negligently delivers, furnishes or produces to the Board any incorrect account, information or document, he shall be liable, in the case of fraud, to a penalty not exceeding the aggregate of [F4£3,000 and the difference] mentioned in subsection (2) below and, in the case of negligence, to a penalty not exceeding the aggregate of [F5£1,500] and that difference.
(2)The difference referred to in subsection (1) above is the amount by which the tax for which that person is liable exceeds what would be the amount of that tax if the facts were as shown in the account, information or document.
(3)Any person not liable for tax on the value transferred by a chargeable transfer who fraudulently or negligently furnishes or produces to the Board any incorrect information or document in connection with the transfer shall be liable, in the case of fraud, to a penalty not exceeding [F6£3,000] and, in the case of negligence, to a penalty not exceeding [F7£1,500].
(4)Any person who assists in or induces the delivery, furnishing or production in pursuance of this Part of this Act of any account, information or document which he knows to be incorrect shall be liable to a penalty not exceeding [F8£3,000] .
Textual Amendments
F4Words in s. 247(1) substituted (27.7.1999 with effect as mentioned in s. 108(4) in the amending Act) by 1999 c. 16, s. 108(2)(a)(i)
F5Words in s. 247(1) substituted (27.7.1999 with effect as mentioned in s. 108(4) in the amending Act) by 1999 c. 16, s. 108(2)(a)(ii)
F6Words in s. 247(3) substituted (27.7.1999 with effect as mentioned in s. 108(4) in the amending Act) by 1999 c. 16, s. 108(2)(b)
F7Words in s. 247(3) substituted (27.7.1999 with effect as mentioned in s. 108(4) in the amending Act) by 1999 c. 16, s. 108(2)(b)
F8Words in s. 247(4) substituted (27.7.1999 with effect as mentioned in s. 108(4) in the amending Act) by 1999 c. 16, s. 108(2)(c)
(1)If after any account, information or document has been delivered, furnished or produced by any person without fraud or negligence it comes to his notice that it was incorrect in any material respect it shall be treated for the purposes of section 247 above as having been negligently delivered, furnished or produced unless the error is remedied without unreasonable delay.
(2)If after any account, information or document has been delivered, furnished or produced by any person in pursuance of this Part of this Act it comes to the notice of any other person that it contains an error whereby tax for which that other person is liable has been or might be underpaid, that other person shall inform the Board of the error; and if he fails to do so without unreasonable delay he shall be liable to the penalty to which he would be liable under section 247 above if the account, information or document had been delivered, furnished or produced by him and the case were one of negligence.
(1)All proceedings for the recovery of penalties under this Part of this Act shall be commenced by the Board, or in Scotland, by the Board or the Lord Advocate.
(2)Any such proceedings may be commenced either before the Special Commissioners or in the High Court or the Court of Session and shall, if brought in the High Court, be deemed to be civil proceedings by the Crown within the meaning of Part II of the M1Crown Proceedings Act 1947 or, as the case may be, that Part as for the time being in force in Northern Ireland.
(3)Where any such proceedings are brought before the Special Commissioners, an appeal shall lie from their decision to the High Court or, as the case may be, the Court of Session—
(a)by either party, on a question of law, and
(b)by the defendant (or, in Scotland, defender) against the amount of any penalty awarded; and on appeal under paragraph (b) above the Court may either confirm the decision or reduce or increase the sum awarded.
(4)Proceedings under this section before the Special Commissioners shall be by way of information in writing made to them, and upon summons issued by them to the defendant (or defender) to appear before them at a time and place stated in the summons, and they shall hear and determine each case in a summary way.
(5)References in this section to the Court of Session are references to that Court as the Court of Exchequer in Scotland.
Modifications etc. (not altering text)
C1S. 249(1):transfer of functions (S.) (20.5.1999) by S.I. 1999/679, arts. 1(2), 2, Sch; S.I. 1998/3178, art. 2(2), Sch. 4
Marginal Citations
(1)No proceedings for the recovery of a penalty under this Part of this Act shall be brought after the end of the period of three years beginning with the date on which the amount of the tax properly payable in respect of the chargeable transfer concerned was notified by the Board to the person or one of the persons liable for the tax or any part of it.
(2)Where the person who has incurred any such penalty has died, any proceedings for the recovery of the penalty which have been or could have been commenced against him may be continued or commenced against his personal representatives, and any penalty awarded in proceedings so continued or commenced shall be a debt due from and payable out of his estate.
(1)An appeal shall lie to the High Court or the Court of Session against the summary determination by the Special Commissioners of a penalty under regulation 24 of the Special Commissioners (Jurisdiction and Procedure) Regulations 1994 in proceedings relating to inheritance tax.
(2)On such an appeal the Court may either confirm or reverse the determination of the Special Commissioners or reduce or increase the sum determined.]
Textual Amendments
F9S. 251 and sidenote substituted (1.9.1994) by S.I. 1994/1813, reg. 2(1), Sch. 1 para.22
Any penalty awarded by the Special Commisioners shall be recoverable by the Board as a debt due to the Crown.
The Board may in their discretion mitigate any penalty, or stay or compound any proceedings for recovery of any penalty, and may also, after judgment, further mitigate or entirely remit the penalty.