Search Legislation

Finance Act 2016

Status:

This is the original version (as it was originally enacted).

PART 2Amount of penalty

Standard amount of asset-based penalty

7(1)The standard amount of the asset-based penalty is the lower of—

(a)10% of the value of the asset, and

(b)offshore PLR x 10.

(2)See also—

(a)paragraphs 8 and 9, which provide for reductions in the standard amount, and

(b)Part 3, which makes provision about the identification and valuation of the asset.

Reductions for disclosure and co-operation

8(1)HMRC must reduce the standard amount of the asset-based penalty where P does all of the following things—

(a)makes a disclosure of the inaccuracy or failure relating to the standard offshore tax penalty;

(b)provides HMRC with a reasonable valuation of the asset;

(c)provides HMRC with information or access to records that HMRC requires from P for the purposes of valuing the asset.

(2)A reduction under sub-paragraph (1) must reflect the quality of the disclosure, valuation and information provided (and for these purposes “quality” includes timing, nature and extent).

(3)The Treasury must make regulations setting out the maximum amount of the penalty reduction under sub-paragraph (1).

(4)The maximum amount may differ according to whether the case involves only unprompted disclosures or involves prompted disclosures.

(5)A case involves only unprompted disclosures where—

(a)in a case where the asset-based penalty relates to only one standard offshore tax penalty, that standard offshore tax penalty was reduced on the basis of an unprompted disclosure, or

(b)in a case where the asset-based penalty relates to more than one standard offshore tax penalty, all of those standard offshore tax penalties were reduced on the basis of unprompted disclosures.

(6)A case involves prompted disclosures where any of the standard offshore tax penalties to which the asset-based penalty relates was reduced on the basis of a prompted disclosure.

(7)Regulations under sub-paragraph (3) are to be made by statutory instrument.

(8)A statutory instrument containing regulations under sub-paragraph (3) is subject to annulment in pursuance of a resolution of the House of Commons.

(9)Regulations under sub-paragraph (3)

(a)may make different provision for different purposes;

(b)may contain supplemental, incidental, consequential, transitional and transitory provision.

Special reduction

9(1)If HMRC think it right because of special circumstances, they may reduce the standard amount of the asset-based 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 for a penalty.

Back to top

Options/Help

Print Options

You have chosen to open The Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open The Whole Act as a PDF

The Whole Act you have selected contains over 200 provisions and might take some time to download.

Would you like to continue?

You have chosen to open the Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open the Whole Act without Schedules

The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open Schedules only

The Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

Close

Legislation is available in different versions:

Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.

Original (As Enacted or Made):The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.

Close

Opening Options

Different options to open legislation in order to view more content on screen at once

Close

More Resources

Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • correction slips
  • links to related legislation and further information resources
Close

More Resources

Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • correction slips

Click 'View More' or select 'More Resources' tab for additional information including:

  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • links to related legislation and further information resources