Time limit for determination of penaltiesU.K.
8(1)The following time limits apply in relation to the determination of penalties under this Schedule.U.K.
(2)The general rule is that—
(a)no penalty may be determined under paragraph 2 (determination by officer of Board), and
(b)no proceedings for a penalty may be brought under paragraph 7 (penalty proceedings before the court),
more than [F14 years] after the date on which the penalty was incurred or, in the case of a daily penalty, began to be incurred [F2(“the relevant date”)] . This rule is subject to the following provisions of this paragraph.
(3)Where the amount of a penalty is to be ascertained by reference to the tax chargeable in respect of a transaction, a penalty may be determined under paragraph 2, or proceedings for a penalty may be begun under paragraph 7, at any time within three years after the final determination of the amount of tax by reference to which the amount of the penalty is to be determined [F3(subject to any of the following provisions of this paragraph allowing a longer period)] .
(4)Sub-paragraph (3) does not apply where a person has died and the determination would be made in relation to his personal representatives if the tax was charged in an assessment made more than six years after the effective date of the transaction to which it relates.
[F4(4A)Where a person is liable to a penalty in a case involving a loss of tax brought about carelessly by the person (or by another person acting on that person's behalf), the penalty may be determined, or the proceedings may be brought, at any time not more than 6 years after the relevant date (subject to sub-paragraphs (4B) and (5)).
(4B)Where a person is liable to a penalty in a case involving a loss of tax—
(a)brought about deliberately by the person (or by another person acting on that person's behalf),
(b)attributable to a failure by the person to comply with an obligation under section 76(1) or paragraph 3(3)(a), 4(3)(a) or 8(3)(a) of Schedule 17A, or
(c)attributable to arrangements in respect of which the person has failed to comply with an obligation under section 309, 310 or 313 of the Finance Act 2004 (obligation of parties to tax avoidance schemes to provide information to Her Majesty's Revenue and Customs),
the penalty may be determined, or the proceedings may be brought, at any time not more than 20 years after the relevant date.
(4C)Paragraph 31A of Schedule 10 (losses brought about carelessly or deliberately) applies for the purpose of this paragraph.]
(5)A penalty under section 96 (penalty for assisting in preparation of incorrect return) may be determined by an officer of the Board, or proceedings for such a penalty may be commenced before a court, at any time within 20 years after the date on which the penalty was incurred.
Textual Amendments
F1Words in Sch. 14 para. 8(2) substituted (1.4.2011) by Finance Act 2009 (c. 10), s. 99(2), Sch. 51 para. 16(2)(a); S.I. 2010/867, art. 2(2) (with art. 7)
F2Words in Sch. 14 para. 8(2) inserted (1.4.2011) by Finance Act 2009 (c. 10), s. 99(2), Sch. 51 para. 16(2)(b); S.I. 2010/867, art. 2(2) (with art. 7)
F3Words in Sch. 14 para. 8(3) inserted (1.4.2011) by Finance Act 2009 (c. 10), s. 99(2), Sch. 51 para. 16(3); S.I. 2010/867, art. 2(2)
F4Sch. 14 para. 8(4A)-(4C) inserted (1.4.2011) by Finance Act 2009 (c. 10), s. 99(2), Sch. 51 para. 16(4); S.I. 2010/867, art. 2(2) (with art. 7)