Source: http://www.legislation.gov.uk/ukpga/2010/13/schedule/10
Timestamp: 2016-02-06 07:23:19
Document Index: 260929527

Matched Legal Cases: ['art 5', 'art. 2', 'art. 5', 'art. 2', 'art. 5', 'art. 2', 'art. 5', 'art. 2', 'art. 5', 'art. 2', 'art. 5']

Skip to main contentSkip to navigationlegislation.gov.ukThe National ArchivesHelpSite MapAccessibilityContact UsCymraegHomeAbout UsBrowse LegislationNew LegislationChanges To LegislationSearch LegislationSearch LegislationTitle: (or keywords in the title)Year:Number:Type:All Legislation (excluding draft)All Primary Legislation UK Public General Acts UK Local Acts Acts of the Scottish Parliament Acts of the National Assembly for Wales Measures of the National Assembly for Wales Church Measures Acts of the Northern Ireland Assembly Acts of the Old Scottish Parliament Acts of the English Parliament Acts of the Old Irish Parliament Acts of the Parliament of Great Britain Northern Ireland Orders in Council Measures of the Northern Ireland Assembly Acts of the Northern Ireland ParliamentAll Secondary Legislation UK Statutory Instruments Wales Statutory Instruments Scottish Statutory Instruments Northern Ireland Statutory Rules Church Instruments UK Ministerial Orders UK Statutory Rules and OrdersAll Draft Legislation UK Draft Statutory Instruments Scottish Draft Statutory Instruments Northern Ireland Draft Statutory RulesAll Impact Assessments UK Impact AssessmentsSearchAdvanced SearchFinance Act 2010You are here:2010 c. 13SCHEDULE 10Table of ContentsContentExplanatory NotesMore ResourcesPrevious: ScheduleNext: SchedulePlain ViewPrint OptionsWhat VersionLatest available (Revised)Original (As enacted)Advanced FeaturesShow Geographical Extent(e.g. England, Wales, Scotland, Northern Ireland)Show Timeline of ChangesOpening OptionsOpen whole ActOpen Act without schedulesOpen Schedules onlyMore ResourcesOriginal Print PDFCorrection Slip - 15/10/2010View moreChanges to legislation:There are currently no known outstanding effects for the Finance Act 2010, SCHEDULE 10.Changes to LegislationRevised legislation carried on this site may not be fully up to date. At the current time any known changes or effects made by subsequent legislation have been applied to the text of the legislation you are viewing by the editorial team. Please see ‘Frequently Asked Questions’ for details regarding the timescales for which new effects are identified and recorded on this site.Section 35SCHEDULE 10E+W+S+N.I.Penalties: offshore income etcThis schedule has no associated Explanatory NotesSchedule 24 to FA 2007E+W+S+N.I.1Schedule 24 to FA 2007 (penalties for errors) is amended as follows.E+W+S+N.I.2For paragraph 4 substitute—E+W+S+N.I.“4(1)This paragraph sets out the penalty payable under paragraph 1.
(2)If the inaccuracy is in category 1, the penalty is—
(a)for careless action, 30% of the potential lost revenue,
(b)for deliberate but not concealed action, 70% of the potential lost revenue, and
(c)for deliberate and concealed action, 100% of the potential lost revenue.
(3)If the inaccuracy is in category 2, the penalty is—
(a)for careless action, 45% of the potential lost revenue,
(b)for deliberate but not concealed action, 105% of the potential lost revenue, and
(c)for deliberate and concealed action, 150% of the potential lost revenue.
(4)If the inaccuracy is in category 3, the penalty is—
(a)for careless action, 60% of the potential lost revenue,
(b)for deliberate but not concealed action, 140% of the potential lost revenue, and
(c)for deliberate and concealed action, 200% of the potential lost revenue.
(5)Paragraph 4A explains the 3 categories of inaccuracy.
4A(1)An inaccuracy is in category 1 if—
(a)it involves a domestic matter, or
(b)it involves an offshore matter and—
(i)the territory in question is a category 1 territory, or
(ii)the tax at stake is a tax other than income tax or capital gains tax.
(2)An inaccuracy is in category 2 if—
(a)it involves an offshore matter,
(b)the territory in question is a category 2 territory, and
(c)the tax at stake is income tax or capital gains tax.
(3)An inaccuracy is in category 3 if—
(b)the territory in question is a category 3 territory, and
(4)An inaccuracy “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 UK,
(b)assets situated or held in a territory outside the UK,
(c)activities carried on wholly or mainly in a territory outside the UK, or
(d)anything having effect as if it were income, assets or activities of a kind described above.
(5)An inaccuracy “involves a domestic matter” if it results in a potential loss of revenue that is charged on or by reference to anything not mentioned in sub-paragraph (4)(a) to (d).
(6)If a single inaccuracy is in more than one category (each referred to as a “relevant category”)—
(a)it is to be treated for the purposes of this Schedule as if it were separate inaccuracies, one in each relevant category according to the matters that it involves, and
(b)the potential lost revenue is to be calculated separately in respect of each separate inaccuracy.
(7)“Category 1 territory”, “category 2 territory” and “category 3 territory” are defined in paragraph 21A.
(8)“Assets” has the meaning given in section 21(1) of TCGA 1992, but also includes sterling.
4BThe penalty payable under paragraph 1A is 100% of the potential lost revenue.4CThe penalty payable under paragraph 2 is 30% of the potential lost revenue.4DParagraphs 5 to 8 define “potential lost revenue”.”3For paragraph 10 substitute—E+W+S+N.I.“10(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.
Standard % Minimum % for prompted disclosureMinimum % for unprompted disclosure30%15%0%45%22.5%0%60%30%0%70%35%20%105%52.5%30%140%70%40%100%50%30%150%75%45%200%100%60%”.4In paragraph 12 (interaction with other penalties), for sub-paragraph (4) substitute—E+W+S+N.I.“(4)Where penalties are imposed under paragraphs 1 and 1A in respect of the same inaccuracy, the aggregate of the amounts of the penalties must not exceed the relevant percentage of the potential lost revenue.
(5)The relevant percentage is—
(a)if the penalty imposed under paragraph 1 is for an inaccuracy in category 1, 100%,
(b)if the penalty imposed under paragraph 1 is for an inaccuracy in category 2, 150%, and
(c)if the penalty imposed under paragraph 1 is for an inaccuracy in category 3, 200%.”
5In Part 5 (general), before the heading “Interpretation” insert—E+W+S+N.I.“Classification of territoriesE+W+S+N.I.21A(1)A category 1 territory is a territory designated as a category 1 territory by order made by the Treasury.
(2)A category 2 territory is a territory that is neither—
(a)a category 1 territory, nor
(b)a category 3 territory.
(3)A category 3 territory is a territory designated as a category 3 territory by order made by the Treasury.
(4)In considering how to classify a territory for the purposes of this paragraph, the Treasury must have regard to—
(a)the existence of any arrangements between the UK and that territory for the exchange of information for tax enforcement purposes,
(b)the quality of any such arrangements (in particular, whether they provide for information to be exchanged automatically or on request), and
(c)the benefit that the UK would be likely to obtain from receiving information from that territory, were such arrangements to exist with it.
(5)An order under this paragraph is to be made by statutory instrument.
(6)Subject to sub-paragraph (7), an instrument containing an order under this paragraph is subject to annulment in pursuance of a resolution of the House of Commons.
(7)If the order is—
(a)the first order to be made under sub-paragraph (1), or
(b)the first order to be made under sub-paragraph (3),
it may not be made unless a draft of the instrument containing it has been laid before, and approved by a resolution of, the House of Commons.
(8)An order under this paragraph does not apply to inaccuracies in a document given to HMRC (or, in a case within paragraph 3(2), inaccuracies discovered by P) before the date on which the order comes into force.
Location of assets etcE+W+S+N.I.21B(1)The Treasury may by regulations make provision for determining for the purposes of paragraph 4A where—
(a)a source of income is located,
(b)an asset is situated or held, or
(c)activities are wholly or mainly carried on.
(2)Different provision may be made for different cases and for income tax and capital gains tax.
(3)Regulations under this paragraph are to be made by statutory instrument.
(4)An instrument containing regulations under this paragraph is subject to annulment in pursuance of a resolution of the House of Commons.”
6After paragraph 23A insert—E+W+S+N.I.“23BUK” means the United Kingdom, including the territorial sea of the United Kingdom.”Schedule 41 to FA 2008E+W+S+N.I.7Schedule 41 to FA 2008 (penalties: failure to notify and certain VAT and excise wrongdoing) is amended as follows.E+W+S+N.I.8For paragraph 6 substitute—E+W+S+N.I.“6(1)This paragraph sets out the penalty payable under paragraph 1.
(2)If the failure is in category 1, the penalty is—
(c)for any other case, 30% of the potential lost revenue.
(3)If the failure is in category 2, the penalty is—
(a)for a deliberate and concealed failure, 150% of the potential lost revenue,
(b)for a deliberate but not concealed failure, 105% of the potential lost revenue, and
(c)for any other case, 45% of the potential lost revenue.
(4)If the failure is in category 3, the penalty is—
(a)for a deliberate and concealed failure, 200% of the potential lost revenue,
(b)for a deliberate but not concealed failure, 140% of the potential lost revenue, and
(c)for any other case, 60% of the potential lost revenue.
(5)Paragraph 6A explains the 3 categories of failure.
6A(1)A failure is in category 1 if—
(2)A failure is in category 2 if—
(3)A failure is in category 3 if—
(4)A failure “involves an offshore matter” if it results in a potential loss of revenue that is charged on or by reference to—
(5)A failure “involves a domestic matter” if it results in a potential loss of revenue that is charged on or by reference to anything not mentioned in sub-paragraph (4)(a) to (d).
(6)If a single failure is in more than one category (each referred to as a “relevant category”)—
(a)it is to be treated for the purposes of this Schedule as if it were separate failures, one in each relevant category according to the matters that it involves, and
(b)the potential lost revenue in respect of each separate failure is taken to be such share of the potential lost revenue in respect of the single failure (see paragraphs 7 and 11) as is just and reasonable.
(7)For the purposes of this Schedule—
(a)paragraph 21A of Schedule 24 to FA 2007 (classification of territories) has effect, but
(b)an order under that paragraph does not apply to relevant obligations that are to be complied with by a date before the date on which the order comes into force.
(8)Regulations under paragraph 21B of Schedule 24 to FA 2007 (location of assets etc) apply for the purposes of paragraph 6A of this Schedule as they apply for the purposes of paragraph 4A of that Schedule.
“assets” has the meaning given in section 21(1) of TCGA 1992, but also includes sterling;
“UK” means the United Kingdom, including the territorial sea of the United Kingdom.
6BThe penalty payable under any of paragraphs 2, 3(1) and 4 is—(a)for a deliberate and concealed act or failure, 100% of the potential lost revenue,
(b)for a deliberate but not concealed act or failure, 70% of the potential lost revenue, and
6CThe penalty payable under paragraph 3(2) is 100% of the potential lost revenue.6DParagraphs 7 to 11 define “potential lost revenue”.”9For paragraph 13 substitute—E+W+S+N.I.“13(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.
(a)the case A minimum applies if—
(i)the penalty is one under paragraph 1, and
(ii)HMRC become aware of the failure less than 12 months after the time when the tax first becomes unpaid by reason of the failure, and
Standard % Minimum % for prompted disclosureMinimum % for unprompted disclosure30%case A: 10%case B: 20%case A: 0%case B: 10%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%35%20%105%52.5%30%140%70%40%100%50%30%150%75%45%200%100%60%”.Schedule 55 to FA 2009E+W+S+N.I.10Schedule 55 to FA 2009 (penalties for failure to make returns etc) is amended as follows.E+W+S+N.I.Annotations:Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.Commencement InformationI1Sch. 10 para. 10 partly in force; Sch. 10 para. 10 not in force at Royal Assent see s. 35(2); Sch. 10 para. 10 in force for certain purposes at 6.4.2011 by S.I. 2011/975, art. 2(2) (with art. 5)11(1)Paragraph 6 (amount of penalty if failure continues more than 12 months) is amended as follows.E+W+S+N.I.(2)In sub-paragraph (3)(a), for “100%” substitute “ the relevant percentage ”.(3)After sub-paragraph (3) insert—“(3A)For the purposes of sub-paragraph (3)(a), the relevant percentage is—
(a)for the withholding of category 1 information, 100%,
(b)for the withholding of category 2 information, 150%, and
(c)for the withholding of category 3 information, 200%.”
(4)In sub-paragraph (4)(a), for “70%” substitute “ the relevant percentage ”.(5)After sub-paragraph (4) insert—“(4A)For the purposes of sub-paragraph (4)(a), the relevant percentage is—
(a)for the withholding of category 1 information, 70%,
(b)for the withholding of category 2 information, 105%, and
(c)for the withholding of category 3 information, 140%.”
(6)After sub-paragraph (5) insert—“(6)Paragraph 6A explains the 3 categories of information.”
Annotations:Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.Commencement InformationI2Sch. 10 para. 11 partly in force; Sch. 10 para. 11 not in force at Royal Assent see s. 35(2); Sch. 10 para. 11 in force for certain purposes at 6.4.2011 by S.I. 2011/975, art. 2(2) (with art. 5)12After paragraph 6 insert—E+W+S+N.I.“6A(1)Information is category 1 information if—
(ii)it is information which would enable or assist HMRC to assess P's liability to a tax other than income tax or capital gains tax.
(2)Information is category 2 information if—
(c)it is information which would enable or assist HMRC to assess P's liability to income tax or capital gains tax.
(3)Information is category 3 information if—
(4)Information “involves an offshore matter” if the liability to tax which would have been shown in the return includes a liability to tax charged on or by reference to—
(5)Information “involves a domestic matter” if the liability to tax which would have been shown in the return includes a liability to tax charged on or by reference to anything not mentioned in sub-paragraph (4)(a) to (d).
(6)If the information which P withholds falls into more than one category—
(a)P's failure to make the return is to be treated for the purposes of this Schedule as if it were separate failures, one for each category of information according to the matters which the information involves, and
(b)for each separate failure, the liability to tax which would have been shown in the return in question is taken to be such share of the liability to tax which would have been shown in the return mentioned in paragraph (a) as is just and reasonable.
(b)an order under that paragraph does not apply to a failure if the filing date is before the date on which the order comes into force.
“UK” means the United Kingdom, including the territorial sea of the United Kingdom.”
Annotations:Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.Commencement InformationI3Sch. 10 para. 12 partly in force; Sch. 10 para. 12 not in force at Royal Assent see s. 35(2); Sch. 10 para. 12 in force for certain purposes at 6.4.2011 by S.I. 2011/975, art. 2(2) (with art. 5)13(1)Paragraph 15 (reductions for disclosure) is amended as follows.E+W+S+N.I.(2)For sub-paragraphs (1) and (2) substitute—“(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.
Standard % Minimum % for prompted disclosureMinimum % for unprompted disclosure70%35%20%105%52.5%30%140%70%40%100%50%30%150%75%45%200%100%60%”.(3)Omit sub-paragraphs (3) and (4).Annotations:Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.Commencement InformationI4Sch. 10 para. 13 partly in force; Sch. 10 para. 13 not in force at Royal Assent see s. 35(2); Sch. 10 para. 13 in force for certain purposes at 6.4.2011 by S.I. 2011/975, art. 2(2) (with art. 5)14In paragraph 17 (interaction with other penalties)—E+W+S+N.I.(a)in sub-paragraph (3), for “100%” substitute “ the relevant percentage ”, and(b)after that sub-paragraph insert—“(4)The relevant percentage is—
Annotations:Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.Commencement InformationI5Sch. 10 para. 14 partly in force; Sch. 10 para. 14 not in force at Royal Assent see s. 35(2); Sch. 10 para. 14 in force for certain purposes at 6.4.2011 by S.I. 2011/975, art. 2(2) (with art. 5)Previous: ScheduleNext: ScheduleBack to topOptions/HelpPrint OptionsPrint The Whole ActPDF The Whole ActWeb page The Whole ActPrint This Schedule onlyPDF This Schedule onlyWeb page This Schedule onlyYou have chosen to open The Whole ActThe Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.Would you like to continue?Continue to openYou have chosen to open The Whole Act as a PDFThe Whole Act you have selected contains over 200 provisions and might take some time to download.Would you like to continue?Continue to openYou have chosen to open the Whole ActThe Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.Would you like to continue?Continue to openYou have chosen to open Schedules onlyThe Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.Would you like to continue?Continue to openLegislation is available in different versions:Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.Original (As Enacted or Made):The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.See additional information alongside the contentGeographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.Opening OptionsDifferent options to open legislation in order to view more content on screen at onceExplanatory NotesText created by the government department responsible for the subject matter of the Act to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. Explanatory Notes were introduced in 1999 and accompany all Public Acts except Appropriation, Consolidated Fund, Finance and Consolidation Acts.More ResourcesAccess essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:the original print PDF of the as enacted version that was used for the print copylists of changes made by and/or affecting this legislation itemconfers power and blanket amendment detailsall formats of all associated documentscorrection slipslinks to related legislation and further information resourcesMore ResourcesUse this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:the original print PDF of the as enacted version that was used for the print copycorrection slipsClick 'View More' or select 'More Resources' tab for additional information including:lists of changes made by and/or affecting this legislation itemconfers power and blanket amendment detailsall formats of all associated documentslinks to related legislation and further information resourcesAll content is available under the Open Government Licence v3.0 except where otherwise stated© Crown copyright