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HMRC internal manual

Compliance Handbook

HM Revenue & Customs
, see all updates

Penalties for Failure to File on Time: Types of penalties for failure to file on time: Occasional returns and returns for periods of 6 months or more: 12 months further penalties: Offshore matter: Definition of an offshore matter

This page currently only applies to returns

  • for income tax, capital gains tax and registered pension schemes
  • that involve an offshore matter , and
  • where the relevant filing obligation arises on or after 6 April 2012.

It does not apply to the Construction Industry Scheme (CIS), see CH62300+.

Amount of penalties involving an offshore matter

Information involves an offshore matter if the liability to tax which would have been shown in the return includes a liability to tax charged on or by reference to one of the following.

  • Income arising from a source in a territory outside the UK.

For example, the person may have an interest-bearing overseas bank account.

  • Assets situated or held in a territory outside the UK.

‘Assets’ takes its meaning from TCGA92/S21(1) so it covers all forms of property. It includes

* physical assets such as land and buildings,
* options, debts and incorporeal property generally, and
* currency. Note that for these purposes currency includes sterling.

For example, the person may own or dispose of land or buildings overseas.

  • Activities carried on wholly or mainly in a territory outside the UK.

For example, the person may have a trade (or a branch of a trade) overseas.

  • Anything having effect as if it were income, assets or activities of a kind described above.