Consultation outcome

Follower Notices and penalties

• From: HM Revenue & Customs
• Published: 16 December 2020
• Last updated: 3 March 2021 — See all updates

This consultation has concluded

Download the full outcome

Follower Notices and Penalties - summary of responses (accessible open document)

ODT, 48.1 KB

This file is in an OpenDocument format

Follower Notices and Penalties - summary of responses

PDF, 209 KB, 12 pages

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Detail of outcome

This document summarises responses to the consultation on proposed changes to penalties that may be charged to people receiving Follower Notices as a result of using avoidance schemes.

Legislation will be included in Finance Bill 2021.

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Original consultation

Summary

We welcome views on proposed changes to Follower Notices penalties.

This consultation ran from
2pm on 16 December 2020 to 11:45pm on 27 January 2021

Consultation description

We are seeking views on proposed changes to penalties that may be charged to people receiving Follower Notices as a result of using avoidance schemes.

The proposals would:

• reduce the rate of Follower Notice penalty from 50% to 30% of the tax in dispute
• introduce a penalty of 20% for those who the tribunal decides acted unreasonably by continuing their litigation against HMRC’s decision

The consultation should be read alongside the draft legislation and the Tax Information and Impact Note, published above.

Documents

Follower Notices and Penalties - consultation

PDF, 260 KB, 17 pages

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Follower notice penalties - draft legislation for consultation

PDF, 670 KB, 7 pages

This file may not be suitable for users of assistive technology.

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Follower Notices and Penalties - Tax Information and Impact Note

PDF, 156 KB, 4 pages

Published 16 December 2020
Last updated 3 March 2021 + show all updates

1. 3 March 2021

   Added outcome and summary of responses.

2. 16 December 2020

   First published.