CH401271 - Charging penalties: charging penalties: introduction: offshore asset based penalties: overview
For guidance on when an asset based penalty will apply see CH122000 onwards.
The standard amount of the asset based penalty is the lower of:
- 10% of the value of the asset, or
- 10 x the Offshore PLR.
Note: if the potential penalty relates to both offshore and domestic matters this is called a ‘combined penalty’. See CH122170 for the special rules for combined penalties.
The offshore PLR, in relation to a tax year, is the total for the year of:
PLR used to calculate the underlying penalty charged under Schedule 24 FA 2007 or Schedule 41 FA 2008 or
the liability to tax used to calculate the underlying penalty charged under Schedule 55 FA 2009
- the potential lost revenue used to calculate the failure to correct penalty charged under Sch 18 FA (No 2) 2017.
Note: Only the PLR or liability to tax relating to the standard offshore tax penalty is taken into account in calculating the offshore PLR.
The penalty can be reduced if a disclosure is made and you should determine