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HMRC internal manual

Enquiry Manual

Human Rights Act 1998 (HRA): Article 6: FA2007 and FA2008 penalties

The penalties introduced by FA 2007 (penalties for inaccuracies) and FA 2008 (penalties for failure to notify and VAT & Excise wrongdoings) have a penalty range for each type of behaviour.

Only the most serious behaviour, deliberate and concealed, has a maximum penalty of 100% of the potential lost revenue, see CH82150 onwards.

The maximum penalty for deliberate behaviour (that is, without concealment) is 70% of the potential lost revenue. We also accept that penalties with a potential maximum penalty of 70% in addition to those with a maximum penalty of 100% are within Article 6 because of the

  • nature of the offence
  • seriousness of the behaviour, and
  • the higher level of maximum penalty, compared to the other penalty ranges.

We do not accept that penalties that arise from careless or non-deliberate behaviours are within Article 6, but when considering penalties you must treat any tax geared penalty where the maximum penalty is 70% or 100% of the potential lost revenue as if they are within Article 6, see CH300200.

For detailed guidance on the FA07 and FA08 penalties please refer to CH80000+.

For detailed guidance on how the Human Rights Act applies to FA 2007/8 penalties, see CH300000+.