CH111200 - Offshore matters: introduction: commencement date for penalties involving offshore matters or offshore transfers

Offshore matters

The specific type of penalty will determine which tax regimes are liable to the penalty and the date on which these penalties can be applied from.

Failure to file on time penalties

The section at CH112000 currently only applies to returns

  • for income tax, capital gains tax and registered pension schemes, that involve an offshore matter, and
  • where the relevant filing obligation arises on or after 6 April 2012.

It does not apply to the Construction Industry Scheme (CIS), see CH62300+.

Failure to notify penalties

The section at CH114000 currently only applies only where

  • the tax at stake is income tax or capital gains tax, and
  • the failure to notify involves an offshore matter, and
  • the relevant obligation arises on or after 6 April 2012.

Penalties for inaccuracies

The section at CH116000 currently only applies only where

  • the tax at stake is income tax, capital gains tax or inheritance tax, and
  • the inaccuracy involves an offshore matter, and
  • the person gave HMRC an inaccurate return or other document which relates to 2011-12 or a later year on or after 6 April 2011.

It does not apply to the Construction Industry Scheme (CIS), see CH62300+.

Offshore transfers

Where Failure to Correct (FTC) penalties are not in scope, offshore transfers in this context apply only for the tax year 2016-17 and later tax years. For Inheritance Tax, offshore transfers apply when transfers of value take place on or after 1 April 2016.

Where offshore transfers relate to Income Tax and Capital Gains Tax, FTC penalties arise for any tax year within the scope of the Requirement to Correct (RTC). That includes transfers ending before the tax year 2016-17. Where offshore transfers relate to Inheritance Tax, FTC penalties arise for any transfer of value within the scope of the RTC. That includes transfers which took place before 1 April 2016.