CH123450 - Offshore matters: requirement to correct certain offshore tax non-compliance: failure to correct - penalties - calculating the offshore potential lost revenue

You must check the date from which these rules apply for the tax or duty you are dealing with. See CH123050 for full details.

The potential lost revenue in relation to any offshore tax non-compliance means the potential loss of revenue attributable to that non-compliance. The amount involved will be determined by the type of offence that has occurred and when it occurred.

When calculating the PLR the guidance to follow will depend on the relevant penalty for inaccuracy, failure to notify, or failure to file. Please follow the links below to the relevant guidance.

Failure to notify chargeability

The PLR is calculated using the relevant rules under

  • paragraph 7 of Schedule 41 to FA 2008, see CH72600+, or
  • section 7(8) of TMA 1970 if the original offshore tax non-compliance took place before 1 April 2010, see EM4550+.

Failure to deliver a return or other document

The PLR is calculated using the relevant rules under

  • paragraph 24 of Schedule 55 FA 2009, see CH63000+, or
  • the difference described in section 93(5) TMA 1970 if the original non-compliance took place before 1 April 2008, see EM4560+.

Delivering an inaccurate document or return

The PLR is calculated using the relevant rules under

  • paragraphs 5 to 8 of Schedule 24 to FA 2007, see CH82120+, or
  • the difference described in section 95(2) of TMA 1970 if the original offshore tax non-compliance took place before 1 April 2008, see EM4501+.

Both an offshore matter or transfer and an onshore matter involved

Where there is offshore tax non-compliance that should have been corrected and other non-compliance that is not covered by the RTC, the PLR attributable to the non-compliance for the offshore matter or transfer is to be taken as such a share of the PLR to the combined tax non-compliance that is just and reasonable.

Section 67 and Schedule 18 Finance Act (No 2) 2017

Schedule 41 FA2008
Schedule 55 FA2009
Schedule 24 FA2007
TMA 1970