HMRC internal manual

Compliance Handbook

Penalties for Failure to Notify: Calculating the penalty: Before calculating the penalty

To work out the penalty to be charged you will need to establish

  • the underlying behaviour that gave rise to the failure, see CH72100 
  • the penalty period, see CH71200 
  • the potential lost revenue (PLR), see CH72620 
  • whether the disclosure was unprompted or prompted, see CH73120,
  • whether the failure to involve an offshore matter and the tax at stake was income tax or capital gains tax, see CH73210+, and
  • the quality of disclosure, see CH73220.

For detailed guidance on how to calculate the penalty, see CH73520.