At the end of section 428 of ITA 2007 insert—

“(5)

The regulations may also make provision—

(a)

for the imposition of a penalty of a specified amount (which must not exceed £3000) for a failure to comply with a specified requirement imposed by the regulations,

(b)

for the assessment and recovery of the penalty (which may include provision about the reduction of the penalty in specified circumstances), and

(c)

conferring a right of appeal against a decision that a penalty is payable.”