(a)under paragraph 1 where a person discloses an inaccuracy that involves a domestic matter,

(b)under paragraph 1A where a person discloses a supply of false information or withholding of information, and

(c)under paragraph 2 where a person discloses a failure to disclose an under-assessment.

(A2)Paragraph 10A provides for reductions in penalties under paragraph 1 where a person discloses an inaccuracy that involves an offshore matter or an offshore transfer.

(3)In sub-paragraph (1), in the words before paragraph (a), for the words from “an inaccuracy” to “under-assessment” substitute “ the matter ”.

(a)a deliberate inaccuracy (whether concealed or not) that involves an offshore matter, or

(c)allowing HMRC access to records for the purpose of ensuring that the inaccuracy is fully corrected, and

(1C)The Treasury must make regulations setting out what is meant by “additional information” for the purposes of sub-paragraph (1B)(d).

(1D)Regulations under sub-paragraph (1C) are to be made by statutory instrument.

(1E)An instrument containing regulations under sub-paragraph (1C) is subject to annulment in pursuance of a resolution of the House of Commons.”

“(4)Paragraph 4A(4) to (5) applies to determine whether an inaccuracy involves an offshore matter, an offshore transfer or a domestic matter for the purposes of this paragraph.”

3U.K.In paragraph 10 (amount of reduction for disclosure), for the Table in sub-paragraph (2) substitute—

“10A(1)If a person who would otherwise be liable to a penalty of a percentage shown in column 1 of the Table (a “standard percentage”) has made a disclosure, HMRC must reduce the standard percentage to one that reflects the quality of the disclosure.

(2)But the standard percentage may not be reduced to a percentage that is below the minimum shown for it—

Amendments to Schedule 41 to the Finance Act 2008 (c. 9)U.K.

5U.K.Schedule 41 to FA 2008 (penalties: failure to notify etc) is amended as follows.

Commencement Information

I7Sch. 21 para. 5 in force at 1.4.2017 with effect in accordance with reg. 2 by S.I. 2017/259, reg. 2

6(1)Paragraph 12 (reductions for disclosure) is amended as follows.U.K.

(2)For sub-paragraph (1) substitute—

“(1)Paragraph 13 provides for reductions in penalties—

(a)under paragraph 1 where P discloses a relevant failure that involves a domestic matter, and

(b)under paragraphs 2 to 4 where P discloses a relevant act or failure.

(1A)Paragraph 13A provides for reductions in penalties under paragraph 1 where P discloses a relevant failure that involves an offshore matter or an offshore transfer.

(1B)Sub-paragraph (2) applies where P discloses—

(a)a relevant failure that involves a domestic matter,

(b)a non-deliberate relevant failure that involves an offshore matter, or

(c)a relevant act or failure giving rise to a penalty under any of paragraphs 2 to 4.”

(3)In sub-paragraph (2), for “a” substitute “ the ”.

(4)After sub-paragraph (2) insert—

“(2A)Sub-paragraph (2B) applies where P discloses—

(a)a deliberate relevant failure (whether concealed or not) that involves an offshore matter, or

(b)a relevant failure that involves an offshore transfer.

(2B)P discloses the failure by—

(a)telling HMRC about it,

(b)giving HMRC reasonable help in quantifying the tax unpaid by reason of it,

(c)allowing HMRC access to records for the purpose of checking how much tax is so unpaid, and

(d)providing HMRC with additional information.

(2C)The Treasury must make regulations setting out what is meant by “additional information” for the purposes of sub-paragraph (2B)(d).

(2D)Regulations under sub-paragraph (2C) are to be made by statutory instrument.

(2E)An instrument containing regulations under sub-paragraph (2C) is subject to annulment in pursuance of a resolution of the House of Commons.”

(5)At the end insert—

“(5)Paragraph 6A(4) to (5) applies to determine whether a failure involves an offshore matter, an offshore transfer or a domestic matter for the purposes of this paragraph.

(6)In this paragraph “relevant failure” means a failure to comply with a relevant obligation.”

Commencement Information

I8Sch. 21 para. 6(1)-(3) (5) in force at 1.4.2017 with effect in accordance with reg. 2 by S.I. 2017/259, reg. 2

I9Sch. 21 para. 6(4) in force at 8.3.2017 for specified purposes by S.I. 2017/259, reg. 3

I10Sch. 21 para. 6(4) in force at 1.4.2017 in so far as not already in force and with effect in accordance with reg. 2 of the commencing S.I. by S.I. 2017/259, reg. 2

7U.K.In paragraph 13 (amount of reduction for disclosure), for the Table in sub-paragraph (3) substitute—

“Standard %	Minimum % for prompted disclosure	Minimum % for unprompted disclosure
30%	case A: 10% case B: 20%	case A: 0% case B: 10%
70%	35%	20%
100%	50%	30%”

Commencement Information

I11Sch. 21 para. 7 in force at 1.4.2017 with effect in accordance with reg. 2 by S.I. 2017/259, reg. 2

8U.K.After paragraph 13 insert—

“13A(1)If a person who would otherwise be liable to a penalty of a percentage shown in column 1 of the Table (a “standard percentage”) has made a disclosure, HMRC must reduce the standard percentage to one that reflects the quality of the disclosure.

(2)But the standard percentage may not be reduced to a percentage that is below the minimum shown for it—

(a)for a prompted disclosure, in column 2 of the Table, and

(b)for an unprompted disclosure, in column 3 of the Table.

(3)Where the Table shows a different minimum for case A and case B—

(a)the case A minimum applies if HMRC becomes aware of the failure less than 12 months after the time when the tax first becomes unpaid by reason of the failure;

(b)otherwise, the case B minimum applies.

Standard %	Minimum % for prompted disclosure	Minimum % for unprompted disclosure
30%	case A: 10% case B: 20%	case A: 0% case B: 10%
37.5%	case A: 12.5% case B: 25%	case A: 0% case B: 12.5%
45%	case A: 15% case B: 30%	case A: 0% case B:15%
60%	case A: 20% case B: 40%	case A: 0% case B: 20%
70%	45%	30%
87.5%	53.75%	35%
100%	60%	40%
105%	62.5%	40%
125%	72.5%	50%
140%	80%	50%
150%	85%	55%
200%	110%	70%”

Commencement Information

I12Sch. 21 para. 8 in force at 1.4.2017 with effect in accordance with reg. 2 by S.I. 2017/259, reg. 2

Amendments to Schedule 55 to the Finance Act 2009 (c.10)U.K.

9U.K.Schedule 55 to FA 2009 (penalty for failure to make returns etc) is amended as follows

Commencement Information

I13Sch. 21 para. 9 in force at 1.4.2017 with effect in accordance with reg. 2 by S.I. 2017/259, reg. 2

10(1)Paragraph 14 (reductions for disclosure) is amended as follows.U.K.

(2)At the beginning insert—

“(A1)In this paragraph, “relevant information” means information which has been withheld by a failure to make a return.”

(3)In sub-paragraph (1)—

(a)after “6(3) or (4)” insert “ where P discloses relevant information that involves a domestic matter ”;

(b)for the words from “information which” to the end substitute “ relevant information ”.

(4)After sub-paragraph (1) insert—

“(1A)Paragraph 15A provides for reductions in the penalty under paragraph 6(3) or (4) where P discloses relevant information that involves an offshore matter or an offshore transfer.

(1B)Sub-paragraph (2) applies where—

(a)P is liable to a penalty under paragraph 6(3) or (4) and P discloses relevant information that involves a domestic matter, or

(b)P is liable to a penalty under any of the other provisions mentioned in sub-paragraph (1) and P discloses relevant information.”

(5)After sub-paragraph (2) insert—

“(2A)Sub-paragraph (2B) applies where P is liable to a penalty under paragraph 6(3) or (4) and P discloses relevant information that involves an offshore matter or an offshore transfer.

(2B)P discloses relevant information by—

(a)telling HMRC about it,

(b)giving HMRC reasonable help in quantifying any tax unpaid by reason of its having been withheld,

(c)allowing HMRC access to records for the purpose of checking how much tax is so unpaid, and

(d)providing HMRC with additional information.

(2C)The Treasury must make regulations setting out what is meant by “additional information” for the purposes of sub-paragraph (2B)(d).

(2D)Regulations under sub-paragraph (2C) are to be made by statutory instrument.

(2E)An instrument containing regulations under sub-paragraph (2C) is subject to annulment in pursuance of a resolution of the House of Commons.”

(6)At the end insert—

“(5)Paragraph 6A(4) to (5) applies to determine whether relevant information involves an offshore matter, an offshore transfer or a domestic matter for the purposes of this paragraph.”

Commencement Information

I14Sch. 21 para. 10(1)-(4) (6) in force at 1.4.2017 with effect in accordance with reg. 2 by S.I. 2017/259, reg. 2

I15Sch. 21 para. 10(5) in force at 8.3.2017 for specified purposes by S.I. 2017/259, reg. 3

I16Sch. 21 para. 10(5) in force at 1.4.2017 in so far as not already in force and with effect in accordance with reg. 2 of the commencing S.I. by S.I. 2017/259, reg. 2

11U.K.In paragraph 15 (amount of reduction for disclosure), for the Table in sub-paragraph (2) substitute—

“Standard %	Minimum % for prompted disclosure	Minimum % for unprompted disclosure
70%	35%	20%
100%	50%	30%”

Commencement Information

I17Sch. 21 para. 11 in force at 1.4.2017 with effect in accordance with reg. 2 by S.I. 2017/259, reg. 2

12U.K.After paragraph 15 insert—

“15A(1)If a person who would otherwise be liable to a penalty of a percentage shown in column 1 of the Table (a “standard percentage”) has made a disclosure, HMRC must reduce the standard percentage to one that reflects the quality of the disclosure.

(2)But the standard percentage may not be reduced to a percentage that is below the minimum shown for it—

(a)in the case of a prompted disclosure, in column 2 of the Table, and

(b)in the case of an unprompted disclosure, in column 3 of the Table.

Standard %	Minimum % for prompted disclosure	Minimum % for unprompted disclosure
70%	45%	30%
87.5%	53.75%	35%
100%	60%	40%
105%	62.5%	40%
125%	72.5%	50%
140%	80%	50%
150%	85%	55%
200%	110%	70%

(3)But HMRC must not under this paragraph reduce a penalty below £300.”

Commencement Information

I18Sch. 21 para. 12 in force at 1.4.2017 with effect in accordance with reg. 2 by S.I. 2017/259, reg. 2

Amendments to Schedule 41 to the Finance Act 2008 (c. 9)U.K.

Amendments to Schedule 55 to the Finance Act 2009 (c.10)U.K.

SCHEDULES

SCHEDULE 21U.K.Penalties relating to offshore matters and offshore transfers

Amendments to Schedule 24 to the Finance Act 2007 (c. 11)U.K.

Standard %	Minimum % for prompted disclosure	Minimum % for unprompted disclosure
30%	15%	0%
37.5%	18.75%	0%
45%	22.5%	0%
60%	30%	0%
70%	45%	30%
87.5%	53.75%	35%
100%	60%	40%
105%	62.5%	40%
125%	72.5%	50%
140%	80%	50%
150%	85%	55%
200%	110%	70%”