Section 209 — Finance Act 2014: Amount of a section 208 or 208A penalty

Amount of a section 208 or 208A penalty 209 1 The penalty under section 208 is 30% of the value of the denied advantage. 1A The penalty under section 208A is 20% of the value of the denied advantage.

2 Schedule 30 contains provision about how the denied advantage is valued for the purposes of calculating penalties under this section.

3 Where P before the relevant time —

a amends a return or claim to counteract part of the denied advantage only, or b takes all necessary action to enter into an agreement with HMRC (in writing) for the purposes of relinquishing part of the denied advantage only, in subsections (1) , (1A) and (2) the references to the denied advantage are to be read as references to the remainder of the denied advantage.

4 The “ relevant time ” means—

a in the case of a penalty under section 208, the specified time;

b in the case of a penalty under section 208A, the day after the end of the appeal period. 5 “The appeal period” has the same meaning for the purposes of this section as it has for the purposes of section 208A (see section 208A(10) and (11)).