Consultation outcome

Follower Notices and penalties

This consultation has concluded

Read the full outcome

Follower Notices and Penalties - summary of responses

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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.


Original consultation

Summary

We welcome views on proposed changes to Follower Notices penalties.

This consultation ran from
to

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

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If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email different.format@hmrc.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Follower notice penalties - draft legislation for consultation

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If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email different.format@hmrc.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Updates to this page

Published 16 December 2020
Last updated 3 March 2021 + show all updates
  1. Added outcome and summary of responses.

  2. First published.

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