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HMRC internal manual

Compliance Handbook

Special reduction: Penalties within the scope of special reduction

You may only consider special reduction for penalties chargeable under the following provisions.

  • FA07/SCH24 - inaccuracy penalties.
  • FA08/SCH41 - failure to notify and VAT and Excise wrongdoing penalties.
  • FA09/SCH55 - failure to make a return.
  • FA09/SCH56 - failure to make payment on time.

For certain failures, some penalties may be issued automatically and some by the officer after consideration. You may consider special reduction for either type of penalty but you must not give a special reduction without authority from Central Policy TAA to do so, see CH175000