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HMRC internal manual

Civil evasion penalties for Customs, Excise and VAT

Civil evasion penalties for Customs, Excise and VAT: acts and omissions that create liability to a CEP for conduct involving dishonesty: excise

The Excise Civil Evasion Penalty regime (EXCEP) was introduced by Section 8 Finance Act 1994 and can only be used for offences committed on or after 1 January 1995.

Section 8 makes provision for a civil evasion penalty where a person engages in any dishonest conduct for the purpose of evading, or attempting to evade any duty of excise.

Evasion includes any act, omission or statement that results in obtaining or securing without being entitled to it:


  • any repayment, rebate or drawback of duty
  • any relief or exemption from any allowance against duty
  • any deferral or other postponement of liability to pay any duty or of the discharge by payment of such liability
  • the failure to cancel any entitlement to, or the withdrawal of, any such repayment, rebate, drawback, relief, exemption or allowance.

For further details of this legislation, see CEP3100.