Explanatory Notes

Finance Act 2009

2009 CHAPTER 10

21 July 2009

Introduction

Section 108: Suspension of Penalties During Currency of Agreement for Deferred Payment

Details of the Section

2.Subsection (1) sets out the circumstances in which the section will apply.

3.Subsection (2) removes liability for the penalties and surcharges listed in subsection (5) from the date a request for deferral is received until the end of the deferral period.

4.Subsection (3) provides for HMRC to impose the suspended penalty on service of a notice, if the terms of the deferral agreement are breached.

5.Subsection (4) sets out the ways in which a deferral agreement can be breached.

6.Subsection (5) sets out the penalties and surcharges to which this section applies.

7.Subsection (6) provides that where a deferral agreement is varied by agreement between HMRC and the taxpayer, this section applies to any agreement as varied.

8.Subsections (7), (8) and (9) provide that HM Treasury may by Order add or remove taxes and penalties from subsection (5) by negative resolution statutory instrument in the House of Commons.