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HMRC internal manual

Excise Civil Penalties Manual

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HM Revenue & Customs
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Types of penalty: Penalty for breach of walking possession agreement

The penalty

If a taxpayer is in breach of a walking possession agreement, you may, subject to sections 3, 4 and 5 of the Finance Act 1994, issue penalty equal to one half of the unpaid duty or penalty which gave rise to the distraint.

The power to issue a penalty for breach of a walking possession agreement

Section 11 of the Finance Act 1994 provides for the issue of a penalty to any taxpayer who is in breach of a walking possession agreement.

Circumstances when a penalty may be issued

Section 11 of the Finance Act 1994 applies when all the following apply

  • a taxpayer owes, but has failed to pay, an amount of excise duty or an excise penalty
  • there is the power to distrain property for the purpose of recovering excise duty or civil penalties under Section 117 of the Customs and Excise Management Act 1979
  • the goods distrained are made the subject of a walking possession agreement
  • the taxpayer is in breach of the agreement not to remove the goods distrained.

Reasonable excuse

This penalty is subject to reasonable excuse provisions, see ECP8000.

Application of Section 11

This section of the Act does not extend to Scotland. Debt recovery in Scotland is covered by separate legislation(This content has been withheld because of exemptions in the Freedom of Information Act 2000) .

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)