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HMRC internal manual

Compliance Handbook

From
HM Revenue & Customs
Updated
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Special reduction: What is a special reduction

HMRC has the discretion to make a special reduction for certain penalties, see CH170200 where there are special circumstances, see CH170600.

A special reduction of a penalty includes

  • staying a penalty, and
  • agreeing a compromise in relation to proceedings for a penalty.

Staying a penalty means stopping or postponing enforcement of a penalty. Agreeing a compromise allows us to forego all or part of a penalty.

You do not enter into discussions regarding the amount of any special reduction. If it is right to reduce a penalty because of special circumstances, TAA will calculate the level of the reduction, see CH175000.