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HMRC internal manual

Enquiry Manual

Concluding the Enquiry: False Statement of Assets and Liabilities/Certificates of Disclosure: Next Action


  • no report is made under EM3821 because the limits are not exceeded, or
  • a case is returned to you with instructions to effect a settlement locally, or
  • there was an incomplete disclosure on an earlier occasion but no formal certificate of disclosure or statement of assets was obtained

you should

  • increase any penalty now found to be due above the ‘normal’ level EM6080 if the penalty is not under FA07/SCH24 or FA08/SCH41.

The revised abatements should reflect the seriousness of the case. For example, a minor omission resulting in a small amount of additional tax might merit only a small increase in penalty. But if there was little or no excuse for the false statement of assets or certificate of disclosure and the additional tax was relatively large, the penalty loading might well be high. Between these two extremes the amount of abatement should be evaluated according to the circumstances.

The way in which a penalty under FA07/SCH24 or FA08/SCH41 is calculated, see CH82400+, looks at the behaviour in relation to an inaccuracy in a particular document, or a particular failure to notify, and does not take into account previous offences.

You should obtain a certificate, or further certificate, of disclosure from the taxpayer before conclusion of the enquiry. You should particularly emphasise the importance of the certificate EM3813 and the Board’s statement on the reverse, before the taxpayer is asked to sign the certificate. A record of what was said should be made in the papers.