SCHEDULES
SCHEDULE 20Penalties for enablers of offshore tax evasion or non-compliance
PART 1Liability for penalty
Meaning of “involving offshore activity” and related expressions
I12
1
This paragraph has effect for the purposes of this Schedule.
2
Conduct involves offshore activity if it involves—
a
an offshore matter,
b
an offshore transfer, or
c
a relevant offshore asset move.
3
Conduct involves an offshore matter if it results in a potential loss of revenue that is charged on or by reference to—
a
income arising from a source in a territory outside the United Kingdom,
b
assets situated or held in a territory outside the United Kingdom,
c
activities carried on wholly or mainly in a territory outside the United Kingdom, or
d
anything having effect as if it were income, assets or activities of the kind described above.
4
Where the tax at stake is inheritance tax, assets are treated for the purposes of sub-paragraph (3) as situated or held in a territory outside the United Kingdom if they are so held or situated immediately after the transfer of value by reason of which inheritance tax becomes chargeable.
5
Conduct involves an offshore transfer if—
a
it does not involve an offshore matter,
b
it is deliberate (whether or not concealed) and results in a potential loss of revenue,
c
the condition set out in paragraph 4AA of Schedule 24 to FA 2007 is satisfied.
6
Conduct involves a relevant offshore asset move if at a time when Q is the beneficial owner of an asset (“the qualifying time”)—
a
the asset ceases to be situated or held in a specified territory and becomes situated or held in a non-specified territory,
b
the person who holds the asset ceases to be resident in a specified territory and becomes resident in a non-specified territory, or
c
there is a change in the arrangements for the ownership of the asset,
and Q remains the beneficial owner of the asset, or any part of it, immediately after the qualifying time.
7
Paragraphs 4(2) to (4) of Schedule 21 to FA 2015 apply for the purposes of sub-paragraph (6) above as they apply for purposes of paragraph 4 of that Schedule.
8
In sub-paragraph (6) above, “specified territory” has the same meaning as in paragraph 4(5) of Schedule 21 to FA 2015.