Section 210 — Finance Act 2014: Reduction of a section 208 penalty for co-operation

Reduction of a section 208 penalty for co-operation 210 1 Where—

a P is liable to pay a penalty under section 208 of the amount specified in section 209(1),

b the penalty has not yet been assessed, and c P has co-operated with HMRC, HMRC may reduce the amount of that penalty to reflect the quality of that co-operation.

2 In relation to co-operation, “ quality ” includes timing, nature and extent.

3 P has co-operated with HMRC only if P has done one or more of the following—

a provided reasonable assistance to HMRC in quantifying the tax advantage;

b counteracted the denied advantage;

c provided HMRC with information enabling corrective action to be taken by HMRC;

d provided HMRC with information enabling HMRC to enter an agreement with P for the purpose of counteracting the denied advantage;

e allowed HMRC to access tax records for the purpose of ensuring that the denied advantage is fully counteracted.

4 But nothing in this section permits HMRC to reduce a penalty to less than 10% of the value of the denied advantage.