Legislation – Finance Act 2026

If a failure referred to in subsection (1) continues after the day on which a penalty is imposed in respect of it, the recipient is liable to a further penalty for each day on which the failure continues.

(4)

The penalty under subsection (3) is—

(a)

in relation to a notice under section 183 (financial institutions), an amount not exceeding £60;

(b)

otherwise, an amount not exceeding £1,000.

(5)

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) or (3) to apply, and

(b)

allow the recipient a period of 30 days beginning with the date of notification to make representations to HMRC.

(6)

This section does not apply in relation to a failure to comply with a requirement imposed under section 185 (restriction on disclosure of notices).

195Penalty for concealing information

(1)

A recipient of an information notice is liable to a penalty if the recipient—

(a)

is required to provide information under the notice issued, and

(b)

conceals, destroys or otherwise disposes of the information—

(i)

before the information has been provided in accordance with the notice, or

(ii)

in circumstances where an officer of Revenue and Customs has notified the person in writing that the information must continue to be available (and has not withdrawn that notification).

(2)

A person is liable to a penalty if—

(a)

an officer of Revenue and Customs has notified the person under section 180(3) that—

(i)

the officer intends to issue an information notice to the person, and

(ii)

certain information would be required under the notice, and

(b)

the person conceals, destroys or otherwise disposes of the information.

(3)

Subsection (2) does not apply if the person concealed, destroyed or otherwise disposed of the information only—

(a)

after the end of the period of 6 months beginning with the day on which they were last notified under section 180(3) in respect of the information, or

(b)

after an information notice has been issued to the person in respect of the information.

(4)

The penalty under subsection (1) or (2) is—

(a)

in relation to a notice under section 183 (financial institutions), £300, or

(b)

otherwise, £20,000.

(5)

In this section, a reference to concealing, destroying or otherwise disposing of information includes a reference to arranging for the concealment, destruction or disposal of information.

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.

197Penalty for disclosing a notice

(1)

A recipient of an information notice is liable to a penalty if the recipient—

(a)

fails to comply with a requirement imposed under section 185 (restriction on disclosure of notices), and

(b)

does so without reasonable excuse.

(2)

The penalty under subsection (1) is—

(a)

in relation to a notice under section 183 (financial institutions), £1,000, or

(b)

otherwise, £10,000.

198Penalty based on monies received

(1)

Subsection (3) applies if—

(a)

a penalty has been imposed on a person under section 194(1) for failure to comply with a notice,

(b)

the person, without reasonable excuse, continues to fail to comply with the notice,

(c)

an officer of Revenue and Customs has reason to believe that—

(i)

the person received money or money’s worth in connection with the contravening arrangements to which the notice relates, and

(ii)

the continuing failure is significant, and

(d)

the Upper Tribunal decides that it is appropriate for a penalty to be imposed under this section.

(2)

For the purposes of subsection (1)(c)(ii), a continuing failure is significant if—

(a)

it continues beyond the end of the period of six months beginning with the day on which the penalty referred to in subsection (1)(a) was imposed, or

(b)

as a result of the continuing failure, it is or is likely to be significantly more difficult for HMRC to—

(i)

monitor the compliance of a connected person with an anti-avoidance enactment, or

(ii)

take, or consider whether HMRC could take, action against a connected person under an anti-avoidance enactment.

(3)

The person is liable to a penalty equal to the amount of money or money’s worth received, or likely to have been received, by the person in connection with the contravening arrangements to which the notice relates.

(4)

The amount of a penalty to which a person is liable under subsection (3) must be determined by the Upper Tribunal (with such determination being treated as assessment).

(5)

An application to the Tribunal for the purposes of subsection (1)(d) or (4) may be made by an officer of Revenue and Customs and must be made before the end of the period of 12 months beginning with—

(a)

in the case of a penalty relating to a notice against which the recipient may appeal under section 204, the latest of—

(i)

the day on which the person became liable to a penalty under section 194(1),

(ii)

the last day of the period in which notice of appeal against the notice could have been given, and

(iii)

if notice of such an appeal has been given, the day on which the appeal is determined or withdrawn, or

(b)

in any other case, the day on which the person became liable to a penalty under section 194(1).

(6)

An officer of Revenue and Customs who makes an application for the purposes of subsection (1)(d) or (4) must notify the person concerned.

(7)

For the purposes of this section, a reference to contravening arrangements to which a notice relates is a reference to arrangements by reference to which the person to whom the notice relates is considered to be a connected person under section 177(1) (including, where the person is a connected person under section 177(1)(b), arrangements by reference to which the other person is considered to be a connected person).

(8)

This section does not apply in relation to a notice under section 183 (financial institutions).

199Increased daily default penalty

(1)

An officer of Revenue and Customs may apply to the tribunal for a determination that an increased penalty should be available under section 194(4) in respect of a person’s failure to comply with an information notice if—

(a)

a penalty has been imposed under section 194(3) (daily penalties for continuing failure) in respect of the failure,

(b)

the failure continues after the end of the period of 30 days beginning with the day on which notification of the penalty under section 194(3) was issued (see paragraph 46 to Schedule 36 to FA 2008), and

(c)

the officer has notified the person of their intention to apply to the tribunal under this section.

(2)

If the tribunal decides that an increased penalty should be available under section 194(4) in respect of a person’s failure, the tribunal must determine—

(a)

the amount of the increased penalty, and

(b)

the day from which it is to be applicable.

(3)

The increased penalty is available under section 194(4) in respect of the failure—

(a)

from the day determined by the tribunal, and

(b)

as though the figure in that subsection were replaced with the amount of the increased penalty.

(4)

An increased penalty under this section may not exceed—

(a)

in relation to a notice under section 183 (financial institutions), £1,000, or

(b)

otherwise, £5,000.

(5)

In determining the amount of the increased penalty, the tribunal must have regard to—

(a)

the likely cost to the person of complying with the notice,

(b)

any benefits to the person of not complying with the notice, and

(c)

any benefits to anyone else resulting from the person’s non-compliance.

(6)

If the tribunal makes a determination under subsection (2), an officer of Revenue and Customs must notify the person to whom it relates of—

(a)

the amount of the increased penalty, and

(b)

the day from which it is to be applicable.