CH122180 - Offshore matters: asset-based penalties: definitions: investigation period and penalty restrictions

Investigation period

Only one asset-based penalty is payable in any investigation period in relation to any given asset.

You cannot charge an asset-based penalty in relation to the same asset in more than one investigation. To ensure this does not happen the legislation introduces the concept of an ‘investigation period’. This is defined as

• the earliest period starting on 1 April 2017 and ending with the last day of the last tax year before the person was notified of an asset-based penalty in respect of an asset, and
• subsequent periods beginning with the day of the last tax year before the person is notified of a subsequent asset-based penalty in respect of the asset.

Different investigation periods may apply in relation to different assets.

Penalty restrictions

If the potential lost revenue (PLR) threshold is met and a standard offshore penalty charged for more than one tax year in the same investigation period, the asset-based penalty is charged for the year with the highest offshore PLR.