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HMRC internal manual

Compliance Handbook

Offshore matters: failure to file on time penalties: categories of information deliberately withheld

Amount of penalties involving an offshore matter or offshore transfer

There are three categories of information that determine the penalty percentage. An offshore matter, CH112200, can fall into any one category or even into more than one category. To decide which category a failure falls into you will need to know the territory in which the offshore matter occurred. CH112300 explains how territories are allocated to the different categories. See CH112500 for examples of how to decide which category a failure falls into.

Category 1 information

Information is category 1 information if

  • it involves an offshore matter or transfer in a category 1 territory, and
  • the information withheld will help us to assess the person’s liability to income tax or capital gains tax.

Please note that for periods from 2016-17 onwards Category 1 penalty ranges are different from penalty ranges for onshore matters and for taxes other than income tax or capital gains tax.

For Category 1 penalty ranges up to and including 2015-16, see CH62240

For Category 1 penalty ranges for periods commencing 2016-17 and for later periods, see CH112700.

Category 2 information

Information is category 2 information if it involves

  • an offshore matter,
  • a category 2 territory, and
  • information that will help us assess the person’s liability to income tax or capital gains tax.

There are higher penalty percentages for information in category 2 and category 3. You will find these percentages at CH112700.

Category 3 information

Information is category 3 information if it involves

  • an offshore matter,
  • a category 3 territory, and
  • information that will help us assess the person’s liability to income tax or capital gains tax.

There are higher penalty percentages for information in category 2 and 3. You will find these percentages at CH112700.

FA09/SCH55/PARA6A