CH401271 - Charging penalties: charging penalties: introduction: offshore asset based penalties: overview
For guidance on when an asset based penalty will apply see CH122000 onwards.
The standard amount of the asset based penalty is the lower of:
- 10% of the value of the asset, or
- 10 x the Offshore PLR.
Note: if the potential penalty relates to both offshore and domestic matters this is called a ‘combined penalty’. See CH122170 for the special rules for combined penalties.
The offshore PLR, in relation to a tax year, is the total for the year of:
- PLR used to calculate the underlying penalty charged under Schedule 24 FA 2007 or Schedule 41 FA 2008 or
- the liability to tax used to calculate the underlying penalty charged under Schedule 55 FA 2009
- the potential lost revenue used to calculate the failure to correct penalty charged under Sch 18 FA (No 2) 2017.
Note: Only the PLR or liability to tax relating to the standard offshore tax penalty is taken into account in calculating the offshore PLR.
The penalty can be reduced if a disclosure is made and you should determine