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HMRC internal manual

Compliance Handbook

From
HM Revenue & Customs
Updated
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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: Categories of information

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

There are three categories of information that determine the penalty percentage. An offshore matter, CH62270, can fall into any one category or even into more than one category. To decide which category a failure falls into you need to know the territory in which the offshore matter occurred. CH62280 explains how territories are allocated to the different categories. See CH62285 for examples of how to decide which category a failure falls into.

Category 1 information

Information is category 1 information if it involves

  • a domestic matter (anything that is not an offshore matter), or
  • an offshore matter, see CH62270, that

    • involves a category 1 territory, or
    • it is information that will help us to assess the person’s liability to tax other than income tax or capital gains tax.

Most information will fall into category 1. The standard penalty percentages apply for this type of information, see CH62240.

Category 2 information

Information is category 2 information if it involves

  • an offshore matter,
  • a category 2 territory, and
  • information that will help us assess the person’s liability to income tax or capital gains tax.

There are higher penalty percentages for information in category 2 and category 3. You will find these percentages at CH62285.

Category 3 information

Information is category 3 information if it involves

  • an offshore matter,
  • a category 3 territory, and
  • information that will help us assess the person’s liability to income tax or capital gains tax.

There are higher penalty percentages for information in category 2 and 3. You will find these percentages at CH62285.

FA09/SCH55/PARA6A