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HMRC internal manual

Compliance Handbook

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 None-deliberate Unprompted within 12 months 0% 30%
Category 1 None-deliberate Prompted within 12 months 10% 30%
Category 1 None-deliberate Unprompted after 12 months 10% 30%
Category 1 None-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 None-deliberate Unprompted within 12 months 0% 30%
Category 1 None-deliberate Prompted within 12 months 10% 30%
Category 1 None-deliberate Unprompted after 12 months 10% 30%
Category 1 None-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 None-deliberate Unprompted within 12 months 0% 45%
Category 2 None-deliberate Prompted within 12 months 15% 45%
Category 2 None-deliberate Unprompted after 12 months 15% 45%
Category 2 None-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 None-deliberate Unprompted within 12 months 0% 60%
Category 3 None-deliberate Prompted within 12 months 20% 60%
Category 3 None-deliberate Unprompted after 12 months 20% 60%
Category 3 None-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