Legislation – Finance Act 2026
Changes to legislation:
Finance Act 2026, Section 196 is up to date with all changes known to be in force on or before 17 April 2026. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
Changes to Legislation
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Changes and effects yet to be applied to Section 196:
- Pt. 15 excluded by S.I. 2026/331 reg. 19
Changes and effects yet to be applied to the whole Act associated Parts and Chapters:
Whole provisions yet to be inserted into this Act (including any effects on those provisions):
- Pt. 15 excluded by S.I. 2026/331 reg. 19
Part 6Avoidance
Chapter 3Anti-avoidance information notices
Civil sanctions
196Penalty for inaccurate information
(1)
A recipient of an information notice is liable to a penalty if the recipient—
(a)
in purporting to comply with the notice, carelessly or deliberately provides inaccurate information, or
(b)
after purporting to comply with the notice—
(i)
discovers that, in doing so, they provided inaccurate information, and
(ii)
does not take reasonable steps to notify HMRC of that fact.
(2)
The maximum penalty under subsection (1) is—
(a)
in relation to a notice under section 183 (financial institutions), £3,000 for each inaccuracy, or
(b)
otherwise, £20,000 for each inaccuracy.
(3)
Before imposing a penalty under this section, an officer of Revenue and Customs must—
(a)
notify the recipient of the fact that the officer considers subsection (1) to apply, and
(b)
allow the recipient a period of 30 days beginning with the date of notification to make representations to HMRC.
(4)
In this section, a reference to carelessness is a reference to a failure to take reasonable care.