IPT06570 - Maintaining the IPT Register: deregistration: failure to notify
Before the 1 April 2010 an insurer who fails to notify a liability to deregistration was, in principle, liable to a penalty (Paragraph 17(l)(c) of Schedule 7 to the Finance Act 1994). It was envisaged that such a penalty would only be imposed in wholly exceptional circumstances. If you are dealing with a case where you believe a penalty might be appropriate contact and discuss the issue with the UoE or Deductions & Financial Services Team.
From the 1 April 2010 Section 123 and Schedule 41 of the Finance Act 2008 requires an insurer to tell HMRC when certain events (called a relevant obligation) happen, and so a failure to notify may mean that a penalty will be imposed, for further details refer to the Compliance Handbook at CH81000.