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HMRC internal manual

Investment Funds Manual

Co-ownership Authorised Contractual Schemes (COACS): Information requirements: Penalties for failing to provide information

Introduction

There are two separate penalties which may apply if the operator of a CoACS fails to provide the required information to investors or to HMRC. Penalties may arise when:

  • The operator of a CoACS fails to provide the information by the reporting date.
  • HMRC has given a formal notice that further information is required, and the   operator of a CoACS fails to provide that information to HMRC.

These penalties are explained in more detail in the following sections.

{#}Penalty for failing to provide information

This penalty concerns the information an operator of a CoACS must provide to investors and to HMRC by the information reporting date.

If the operator of a CoACS fails to provide information to investors, to another CoACS or to HMRC by the information reporting date, the operator is liable to a penalty of £60. The charge of £60 is for each occurrence, up to a maximum of £600 per any period of account.

This penalty is contained in regulation 8 of The Co-ownership Authorised Contractual Schemes (Tax) Regulations 2017 (SI 2017/1209).

{#}Penalty for failing to provide further information following a HMRC notice

This penalty concerns the information the operator of a CoACS must provide in response to a formal HMRC notice to produce further information.

If the operator of a CoACS fails to provide information requested under a notice by HMRC by the date specified in the notice, the operator is liable to a penalty not exceeding £3000.

This amount is determined in accordance with section 100 of the Taxes Management Act (1970) and is subject to the usual review and appeal processes for penalties made under that section. HMRC guidance is contained in the Enquiry Manual from EM5200 onwards.

This penalty is provided for by regulation 9 of The Co-ownership Authorised Contractual Schemes (Tax) Regulations 2017 (SI 2017/1209).