ÀÏ˾»úÎçÒ¹¸£Àû

Introduction

Under the equivalent pre-harmonised penalty regime, HMRC could impose a penalty in respect of an error in a specified type of document which resulted from fraud or negligence on the part of the taxpayer¹.

As there is a time limit of 20 years for HMRC to raise an assessment in a case where the taxpayer has acted fraudulently, penalties will still be imposed under the pre-harmonised regime, albeit with increasing rarity, until the early 2030s.

Penalties were most commonly imposed for:

1. Ìý

   •ÌýÌýÌýÌý incorrect returns of accounts for income tax or capital gains²

2. Ìý

   •ÌýÌýÌýÌý incorrect partnership returns or accounts³

3. Ìý

   •ÌýÌýÌýÌý incorrect returns, statements, or declarations by a company in connection with any claim for any allowance, deduction, or relief⁴

4. Ìý

   •ÌýÌýÌýÌý failing to correct a return or accounts after the error had come to the taxpayer's notice⁵

5. Ìý

   •ÌýÌýÌýÌý assisting in the preparation of incorrect returns of another person⁶

Calculation of penalties

The general principle