CH116600 - Offshore matters: inaccuracies 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, capital gains tax and inheritance tax, for standard penalty 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 | Careless | Unprompted | 0% | 30% |
| Category 1 | Careless | Prompted | 15% | 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 | Careless | Unprompted | 0% | 45% |
| Category 2 | Careless | Prompted | 22.5% | 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 | Careless | Unprompted | 0% | 60% |
| Category 3 | Careless | Prompted | 30% | 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 | Careless | Unprompted | 0% | 30% |
| Category 1 | Careless | Prompted | 15% | 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 | Careless | Unprompted | 0% | 45% |
| Category 2 | Careless | Prompted | 22.5% | 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 | Careless | Unprompted | 0% | 60% |
| Category 3 | Careless | Prompted | 30% | 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 ‘Careless’ 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 careless behaviour are the same as the ranges for onshore matters irrespective of the period, see CH82510.
For example
For an unprompted disclosure of a deliberate but not concealed inaccuracy within category 2, the maximum penalty is 105% and the minimum penalty is 40%. The extent of the quality of disclosure reduction, see CH82430, gives the point between the maximum 105% and the minimum 40% at which the penalty lies.
Where an offshore matter or offshore transfer, see CH100000, is a factor in the disclosure, Schedule 21 FA 2016 introduced a new element to the quality of disclosure for years 2017-18 and later. ‘Additional information’ is now to be taken into account alongside telling, helping and giving when considering the quality of any disclosure to HMRC. This new element only applies to offshore matters and offshore transfers. See CH117000 for further guidance.