Finance Act 2009

Finance Act 2009

2009 CHAPTER 10

Introduction

Section 109 and Schedule 57: Amendments Relating to Penalties

Summary

1. Section 109 and Schedule 57 make amendments to the provisions in Schedule 24 to Finance Act (FA) 2007 (penalties for errors) and Schedule 41 to FA 2008 (penalties for failure to notify and certain other wrongdoing). It also makes certain related changes.

Details of the Section

2. The section introduces the Schedule. There is no requirement for an order to appoint a day for commencement.

Details of the Schedule

3. Paragraph 2 clarifies that the term under-assessment includes a reference to under-determination.

4. Paragraph 3 provides that only relief under section 419 of the Income and Corporation Taxes Act 1988 that is deferred under section 419(4A) of that section is to be ignored for the purposes of calculating “potential lost revenue”.

5. Paragraph 5 provides that references to assessment in Part 3 of Schedule 24 to FA 2007 are references to a determination for the purposes of inheritance tax and stamp duty reserve tax.

6. Paragraph 6 provides that it is not necessary for a person to pay the penalty under Schedule 24 to FA 2007 in order for an appeal to be heard.

7. Paragraph 7 clarifies the definition of an officer of the company for the purposes of attributing liability for a penalty.

8. Paragraph 11 provides that it is not necessary for a person to pay the penalty under Schedule 41 to FA 2008 in order for an appeal to be heard.

9. Paragraph 12 clarifies the definition of an officer of the company for the purposes of attributing liability for a penalty.

10. Paragraph 13 disapplies the assessment provisions of the Taxes Management Act 1970 in relation to certain penalty provisions contained within Finance Acts 2007, 2008 and 2009.

Background Note

11. This section and Schedule make certain necessary changes to provisions in previous Finance Acts to clarify the application of various penalty provisions.