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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: Information falls into more than one category

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

If the information falls into more than one category

  • the person’s failure to make the return is treated as if it were separate failures for each category of information, and
  • for each category, the liability to tax which would have been shown in the return is taken to be such share of the liability to tax which would have been shown in the return as is just and reasonable.

For example, if the information involves an income source or an asset that is present in territory A and territory B but territory A is in category 1 while territory B is in category 3, you should

  • treat the information as if it were two separate failures, one for territory A, the other for territory B,
  • place the failure for territory A in category 1 and the failure for territory B in category 3, and
  • share the total tax liability from the return between each of the two failures. You will need to look at the facts of the situation to do this in a just and reasonable way.