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HMRC internal manual

Compliance Handbook

From
HM Revenue & Customs
Updated
, see all updates

Penalties for Failure to Notify: Calculating the penalty: Penalty reductions for quality of disclosure: Examples of unprompted or prompted disclosure

Example 1

Simon inherits a property from his Grandmother. He decides to rent the property rather than sell. Simon receives the rental income from June 2009 but he does not notify us. In January 2011 following a national campaign by HMRC to remind people to send in their SA returns Simon decides to contact us and declare his rental income. As Simon had no reason to believe we were looking at his tax affairs this is an unprompted disclosure.

Example 2

Simon inherits a property from his Grandmother. He decides to rent the property rather than sell. Simon receives the rental income from June 2009 but he does not notify us. In January 2011 he receives a letter from us asking if he is receiving rental income. Simon realises that we have some information with regards to this so decides to tell us of the rent. This is a prompted disclosure because we made contact with him.