SCHEDULES

C1C5C3C2C4C6C7C8C9C10C13C12C11C16C17SCHEDULE 24Penalties for errors

Annotations:
Modifications etc. (not altering text)
C4

Sch. 24 modified (8.4.2010) by Finance Act 2010 (c. 13), Sch. 1 para. 37

C6

Sch. 24 applied (with modifications) (19.4.2013) by The Small Charitable Donations Regulations 2013 (S.I. 2013/938), regs. 1, 15

C7

Sch. 24 excluded (17.7.2014) by Finance Act 2014 (c. 26), Sch. 35 para. 13(a)

C9

Sch. 24 applied (with modifications) by 1992 c. 4, s. 11A(1)(3) (as inserted (with effect in accordance with Sch. 1 para. 35 of the amending Act) by National Insurance Contributions Act 2015 (c. 5), Sch. 1 para. 3)

C10

Sch. 24 applied (with modifications) by 1992 c.7 (N.I.) s. 11A(1)(3) (as inserted (with effect in accordance with Sch. 1 para. 35 of the amending Act) by National Insurance Contributions Act 2015 (c. 5), Sch. 1 para. 12)

C13

Sch. 24 applied (with application in accordance with reg. 1 of the amending S.I.) by The Education (Postgraduate Masters Degree Loans) Regulations 2016 (S.I. 2016/606), regs. 1(1), 85(4)

C12

Sch. 24 applied (with application in accordance with reg. 1 of the amending S.I.) by The Education (Postgraduate Masters Degree Loans) Regulations 2016 (S.I. 2016/606), regs. 1(1), 50(3)

C11

Sch. 24 applied (with application in accordance with reg. 1 of the amending S.I.) by The Education (Postgraduate Masters Degree Loans) Regulations 2016 (S.I. 2016/606), regs. 1(1), 24(3)

C7Part 2Amount of penalty

Potential lost revenue: multiple errors

I1C14C156

1

Where P is liable to a penalty F1under paragraph 1 in respect of more than one inaccuracy, and the calculation of potential lost revenue under paragraph 5 in respect of each inaccuracy depends on the order in which they are corrected—

a

careless inaccuracies shall be taken to be corrected before deliberate inaccuracies, and

b

deliberate but not concealed inaccuracies shall be taken to be corrected before deliberate and concealed inaccuracies.

2

In calculating potential lost revenue where P is liable to a penalty F2under paragraph 1 in respect of one or more understatements in one or more documents relating to a tax period, account shall be taken of any overstatement in any document given by P which relates to the same tax period.

3

In sub-paragraph (2)—

a

“understatement” means an inaccuracy that satisfies Condition 1 of paragraph 1, and

b

“overstatement” means an inaccuracy that does not satisfy that condition.

4

For the purposes of sub-paragraph (2) overstatements shall be set against understatements in the following order—

a

understatements in respect of which P is not liable to a penalty,

b

careless understatements,

c

deliberate but not concealed understatements, and

d

deliberate and concealed understatements.

5

In calculating F3for the purposes of a penalty under paragraph 1 potential lost revenue in respect of a document given by or on behalf of P no account shall be taken of the fact that a potential loss of revenue from P is or may be balanced by a potential over-payment by another person (except to the extent that an enactment requires or permits a person's tax liability to be adjusted by reference to P's).