CH114600 - Offshore matters: failure to notify penalties: penalty ranges
Please note that for 2016-17 and later periods there are different penalty percentage ranges for all three offshore categories. The minimum penalty for ‘Deliberate’ and ‘Deliberate and Concealed’ behaviours were all increased by 10% for years 2016-17 onwards by virtue of Schedule 21 FA 2016.
These penalty ranges only apply to income tax and capital gains tax for standard rates, see CH73200.
Penalty Percentage Rates for periods up to and including 2015-16
| Category | Behaviour | Type of Disclosure | Minimum Penalty | Maximum Penalty |
|---|---|---|---|---|
| Category 1 | Non-deliberate | Unprompted within 12 months | 0% | 30% |
| Category 1 | Non-deliberate | Prompted within 12 months | 10% | 30% |
| Category 1 | Non-deliberate | Unprompted after 12 months | 10% | 30% |
| Category 1 | Non-deliberate | Prompted after 12 months | 20% | 30% |
| Category 1 | Deliberate | Unprompted | 20% | 70% |
| Category 1 | Deliberate | Prompted | 35% | 70% |
| Category 1 | Deliberate and concealed | Unprompted | 30% | 100% |
| Category 1 | Deliberate and concealed | Prompted | 50% | 100% |
| Category 2 | Non-deliberate | Unprompted within 12 months | 0% | 45% |
| Category 2 | Non-deliberate | Prompted within 12 months | 15% | 45% |
| Category 2 | Non-deliberate | Unprompted after 12 months | 15% | 45% |
| Category 2 | Non-deliberate | Prompted after 12 months | 30% | 45% |
| Category 2 | Deliberate | Unprompted | 30% | 105% |
| Category 2 | Deliberate | Prompted | 52.5% | 105% |
| Category 2 | Deliberate and concealed | Unprompted | 45% | 150% |
| Category 2 | Deliberate and concealed | Prompted | 75% | 150% |
| Category 3 | Non-deliberate | Unprompted within 12 months | 0% | 60% |
| Category 3 | Non-deliberate | Prompted within 12 months | 20% | 60% |
| Category 3 | Non-deliberate | Unprompted after 12 months | 20% | 60% |
| Category 3 | Non-deliberate | Prompted after 12 months | 40% | 60% |
| Category 3 | Deliberate | Unprompted | 40% | 140% |
| Category 3 | Deliberate | Prompted | 70% | 140% |
| Category 3 | Deliberate and concealed | Unprompted | 60% | 200% |
| Category 3 | Deliberate and concealed | Prompted | 100% | 200% |
The penalty ranges for a Category 1 offshore matter are the same as the penalty ranges for onshore matters up to and including 2015-16.
Penalty Percentage Rates for periods commencing with 2016-17 and for later periods
| Category | Behaviour | Type of Disclosure | Minimum Penalty | Maximum Penalty |
|---|---|---|---|---|
| Category 1 | Non-deliberate | Unprompted within 12 months | 0% | 30% |
| Category 1 | Non-deliberate | Prompted within 12 months | 10% | 30% |
| Category 1 | Non-deliberate | Unprompted after 12 months | 10% | 30% |
| Category 1 | Non-deliberate | Prompted after 12 months | 20% | 30% |
| Category 1 | Deliberate | Unprompted | 30% | 70% |
| Category 1 | Deliberate | Prompted | 45% | 70% |
| Category 1 | Deliberate and concealed | Unprompted | 40% | 100% |
| Category 1 | Deliberate and concealed | Prompted | 60% | 100% |
| Category 2 | Non-deliberate | Unprompted within 12 months | 0% | 45% |
| Category 2 | Non-deliberate | Prompted within 12 months | 15% | 45% |
| Category 2 | Non-deliberate | Unprompted after 12 months | 15% | 45% |
| Category 2 | Non-deliberate | Prompted after 12 months | 30% | 45% |
| Category 2 | Deliberate | Unprompted | 40% | 105% |
| Category 2 | Deliberate | Prompted | 62.5% | 105% |
| Category 2 | Deliberate and concealed | Unprompted | 55% | 150% |
| Category 2 | Deliberate and concealed | Prompted | 85% | 150% |
| Category 3 | Non-deliberate | Unprompted within 12 months | 0% | 60% |
| Category 3 | Non-deliberate | Prompted within 12 months | 20% | 60% |
| Category 3 | Non-deliberate | Unprompted after 12 months | 20% | 60% |
| Category 3 | Non-deliberate | Prompted after 12 months | 40% | 60% |
| Category 3 | Deliberate | Unprompted | 50% | 140% |
| Category 3 | Deliberate | Prompted | 80% | 140% |
| Category 3 | Deliberate and concealed | Unprompted | 70% | 200% |
| Category 3 | Deliberate and concealed | Prompted | 110% | 200% |
The penalty ranges for ‘Non-deliberate’ behaviour are the same as they were for periods up to and including 2015-16, so for example, the penalty ranges for a Category 1 offshore matter with non-deliberate behaviour are the same as the ranges for onshore matters irrespective of the period.
Where a failure penalty falls within any of the penalty ranges (the penalty percentage rate) depends on
- the type of failure, see CH72100,
- whether the disclosure is unprompted or prompted, see CH73120, and
- the time at which a non-deliberate failure is disclosed, see CH73180.
For guidance on how to determine reductions for the quality of disclosure, see CH73220.
FA08/SCH41/PARA6A
FA08/SCH41/PARA13A