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HMRC internal manual

Compliance Handbook

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

Amount of penalties involving an offshore matter

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

  • a domestic matter (anything that is not an offshore matter), or
  • an offshore matter that
    • involves a category 1 territory, or
    • it is information that will help us to assess the person’s liability to tax other than income tax or capital gains tax.

Most information will fall into category 1. The standard penalty percentages apply for this type of information, see CH62240.

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 CH112500.

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 CH112500.

FA09/SCH55/PARA6A