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HMRC internal manual

Compliance Handbook

Offshore matters: failure to notify penalties: category 2 penalty range

Where a failure falls within category 2, see CH114300, maximum and minimum penalty percentages for each type of failure depend 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.

Unprompted disclosure - category 2

Type of behaviour Deliberate and concealed Deliberate Non-deliberate
Maximum penalty 150% 105% 45%
Minimum penalty      
Failure disclosed more than 12 months after the tax becomes unpaid 55% 40% 15%
Failure disclosed within 12 months of the tax becoming unpaid 55% 40% 0%

As shown, it is possible to reduce the penalty to nil for an unprompted disclosure where the failure to comply with a relevant obligation is non-deliberate within category 2 and the person notifies us within 12 months of the time at which tax first becomes unpaid.

Prompted disclosure - category 2

Type of behaviour Deliberate and concealed Deliberate Non-deliberate
Maximum penalty 150% 105% 45%
Minimum penalty      
Failure disclosed more than 12 months after the tax becomes unpaid 85% 62.5% 30%
Failure disclosed within 12 months of the tax becoming unpaid 85% 62.5% 15%

FA08/SCH41/PARA6A

FA08/SCH41/PARA13A