CH124610 - Offshore matters: penalties for enablers of offshore tax evasion or non-compliance: calculating the penalty: penalty amount
A penalty is calculated by applying an appropriate percentage to the potential lost revenue (PLR). See CH124630 for further guidance on calculating the PLR.
Most penalties will be calculated using the standard penalty rates, see below.
Standard penalty
The standard penalty is the greater of
- 100% of the potential lost revenue, or
- £3,000.
Offshore asset moves
If the relevant penalty relates to an offshore asset move, the enabler can be charged an additional penalty, which is the greater of
- 50% of the potential lost revenue, or
- £3,000.
The penalty for enabling offshore tax non-compliance and the penalty for enabling an offshore asset move are two distinct penalties. In certain circumstances the enabler may be liable to a standard penalty for enabling another person to carry out offshore tax evasion or non-compliance and if they then also enable an offshore asset move the enabler may be liable to another penalty for enabling that offshore asset move.
Prompted or unprompted disclosure
For minimum penalty ranges based on prompted or unprompted disclosure, see CH124640.
Special reduction
HMRC may use its discretion to reduce a penalty because of special circumstances. Special circumstances must be considered when applying a penalty. For guidance on special circumstances and special reduction, see CH124660.