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HMRC internal manual

Compliance Handbook

Offshore matters: inaccuracies penalties: category 3 penalty range

Penalties for category 3 inaccuracies are two times the corresponding penalty for category 1 inaccuracies. The following tables show the maximum and the minimum penalties for each type of inaccuracy falling within category 3 for unprompted or prompted disclosures.

Unprompted disclosure - category 3

Type of inaccuracy Careless Deliberate Deliberate and concealed
Maximum penalty 60% 140% 200%
Minimum penalty 0% 40% 60%

It is possible to achieve a reduction to nil for an unprompted disclosure of a careless inaccuracy within category 3.

Prompted disclosure - category 3

For a prompted disclosure of an inaccuracy within category 3, each penalty can be reduced by up to half of the maximum penalty.

Type of inaccuracy Careless Deliberate Deliberate and concealed
Maximum penalty 60% 140% 200%
Minimum penalty 30% 70% 100%

For example

For an unprompted disclosure of a deliberate but not concealed inaccuracy within category 3, the maximum penalty is 140% and the minimum penalty is 40%. The extent of the quality of disclosure reduction, CH82430, gives the point between the maximum 140% and the minimum 40% at which the penalty lies.

FA07/SCH24/PARA10