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Finance Act 2026

Type Public General Act

Publication 2026-03-18

Last updated 2026-10-01

State In force

Department Statute Law Database

Source legislation.gov.uk

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(2) In this section, “unidentified connected person” means—

(a) a connected person whose identity is not known to the officer, or

(b) a class of persons whose individual identities are not known to the officer but, of which, one or more members is a connected person.

(3) A notice under this section may only require information that is not readily available from another source.

(4) An officer of Revenue and Customs may not issue a notice under this section without the approval of the tribunal.

(5) In subsection (1)(b), the reference to taking action against an unidentified connected person includes a reference to taking action against one or more members of a class referred to in subsection (2)(b).

Information notices: identification

182

(1) An officer of Revenue and Customs may by notice require a person to provide identifying information that is, in the opinion of the officer, reasonably required for the purpose of identifying an unidentified connected person.

(2) An officer of Revenue and Customs may not issue a notice under subsection (1) unless the officer has reason to believe that—

(a) the intended recipient of the notice could identify the unidentified connected person by reference to information provided by the officer, and

(b) the recipient obtained the identifying information in the course of a business.

(3) A notice under this section may only require information that is not readily available from another source.

(4) In this section—

“identifying information” means one or more of an unidentified connected person’s—name;last known address;in the case of an individual, date of birth;

“unidentified connected person” has the meaning given in section 181.

(5) An officer of Revenue and Customs who is not an authorised officer may not issue a notice under this section without the approval of either—

(a) the tribunal, or

(b) an authorised officer of Revenue and Customs.

(6) An authorised officer of Revenue and Customs may seek the approval of the tribunal before issuing a notice under this section.

Information notices: financial institutions

183

(1) An officer of Revenue and Customs may by notice require a financial institution to provide information that is, in the opinion of the officer, reasonably required for the purposes of—

(a) monitoring the compliance of a connected person with an anti-avoidance enactment, or

(b) HMRC taking, or considering whether HMRC could take, action against a connected person under an anti-avoidance enactment.

(2) A notice under this section must identify the connected person to whom it relates.

(3) An officer of Revenue and Customs may not issue a notice under this section without the approval of the tribunal.

(4) After issuing a notice under this section, an officer of Revenue and Customs must provide to the connected person identified in the notice—

(a) a copy of the notice, and

(b) a summary of the officer’s reasons for requiring the information.

(5) Subsection (4) does not apply to the extent the tribunal is satisfied that taking the steps in that subsection might prejudice the investigation of tax avoidance.

(6) In this section—

“financial institution” means—a financial institution under the CRS other than one which is such an institution only because it is an investment entity within section 8(A)(6)(b) of the CRS;a person who issues credit cards;

“CRS” means the common reporting standard for automatic exchange of financial account information developed by the Organisation for Economic Co-operation and Development, as that standard has effect from time to time.

Content, requirements and withdrawal of notices

Content and requirements of notices

184

(1) An information notice must specify (or, in the case of paragraphs (a) and (b), describe)—

(a) the information that the recipient is required to provide;

(b) the form in which, and the means by which, the information is to be provided;

(d) the provision under which the notice is issued;

(e) whether the notice is issued with the approval of the tribunal.

(2) An information notice issued under sections 180 to 183 may only require information that would not, in the reasonable opinion of an officer of Revenue and Customs, be unduly onerous for the recipient to provide.

(3) An information notice may not require a person to produce a document if the whole of the document originates more than 6 years before the date of the notice without the agreement of an authorised officer of Revenue and Customs.

(4) An information notice may be issued to a person outside the United Kingdom.

Restriction on disclosure of notices

185

(1) An information notice may require the recipient not to disclose the existence or contents of the notice to—

(a) the connected person to whom the notice relates,

(b) in the case of a notice under section 181, members of the class of persons to which the notice relates,

(c) any person who might reasonably be expected to disclose the existence or contents of the notice to the connected person or members of the class, or

(d) any other person.

(2) A requirement under subsection (1)(d) may not prohibit disclosure for, or in connection with, the purpose of—

(a) complying with the notice, or

(b) seeking legal advice.

(3) A requirement imposed under subsection (1) has effect until the end of the period of 12 months beginning with the day on which the notice is issued, unless before the end of that period—

(a) the requirement is withdrawn in accordance with subsection (4), or

(b) the period is extended in accordance with subsection (5).

(4) An officer of Revenue and Customs may withdraw the requirement by notifying the recipient in writing.

(5) An officer of Revenue and Customs may by notice to the recipient—

(a) extend the period during which a requirement imposed under subsection (1) has effect by a period of 12 months beginning with the day after the last day of the previous period of 12 months, and

(b) do so on one or more occasions.

(6) An officer of Revenue and Customs may not issue a notice under subsection (5) unless—

(a) the officer considers that there are reasonable grounds for believing that failure to extend the period might prejudice the investigation of tax avoidance, and

(b) where the officer is not an authorised officer of Revenue and Customs, an authorised officer agrees with the officer’s—

(i) decision to extend the period, and

(ii) assessment under paragraph (a).

Excepted information

186

(1) An information notice does not require a person to provide information that is not in the possession or power of that person.

(2) An information notice does not require a person to provide—

(a) information that relates to the conduct of a pending tax appeal or appeal against a decision under an anti-avoidance enactment;

(b) personal records (as defined in section 12 of the Police and Criminal Evidence Act 1984) or information contained in such records, except that a notice may require a person to produce a redacted version of a document omitting any information that would otherwise make it personal records;

(d) information in respect of a which a claim to legal professional privilege or, (in Scotland) to confidentiality of communications as between a client and professional legal advisor, could be maintained by the person in legal proceedings.

(3) An information notice does not require a person who has been appointed auditor for the purposes of an enactment to provide information held or created in connection with the performance of the person’s functions under the enactment, other than information that the recipient of the notice has assisted any client in preparing for, or delivering to, HMRC.

(4) Subsection (3) does not apply in relation to—

(a) a notice under section 182 (identification), or

(b) identifying information (within the meaning given in section 182) required by a notice under section 181 in respect of—

(i) the connected person to whom the notice relates, or

(ii) a person who has acted on behalf of the connected person.

(5) The Commissioners may by regulations make provision for the resolution by the tribunal of disputes as to whether any information falls within subsection (2)(d) (privilege).

(6) Regulations under subsection (5) are to be made by statutory instrument and a statutory instrument containing regulations under subsection (5) is subject to annulment in pursuance of a resolution of the House of Commons.

Tribunal approval of notices

187

(1) An application to the tribunal for approval of a notice, or disapplication of requirements, under this Chapter may be made without notice.

(2) An officer of Revenue and Customs (other than an authorised officer) may not seek the approval of, or disapplication of requirements by, the tribunal without the agreement of an authorised officer of Revenue and Customs.

(3) The tribunal may not approve the issue of a notice under sections 179 to 183 unless it is satisfied that the requirements of the relevant section are met.

(4) A decision of the tribunal is final (despite sections 11 and 13 of the Tribunals, Courts and Enforcement Act 2007).

Withdrawal of notices

188

An officer of Revenue and Customs may withdraw an information notice by notifying the recipient in writing.

Criminal sanctions

Offence of failing to comply with a notice

189

(1) A recipient of an information notice commits an offence if the recipient—

(a) fails to comply with the notice, or

(b) in purporting to comply with the notice, carelessly or deliberately provides inaccurate information.

(2) It is a defence for a person charged with an offence under subsection (1)(a) to show that they had a reasonable excuse.

(3) In this section, a reference to carelessness is a reference to a failure to take reasonable care.

(4) This section does not apply in respect of a notice under section 183 (financial institutions).

Offence of concealing information

190

(1) A recipient of an information notice commits an offence if the recipient conceals, destroys or otherwise disposes of information that is required to be provided under the notice.

(2) It is a defence for a person charged with an offence under subsection (1) to show that they concealed, destroyed or otherwise disposed of the information only after the information had been provided in accordance with the notice.

(3) Subsection (2) does not apply where an officer of Revenue and Customs had notified the person in writing that the information must continue to be available (and had not withdrawn that notification).

(4) A person commits an offence if—

(a) an officer of Revenue and Customs has notified the person under section 180 (3) that—

(i) the officer intends to issue an information notice to the person, and

(ii) certain information would be required under the notice, and

(b) the person conceals, destroys or otherwise disposes of the information.

(5) It is a defence for a person charged with an offence under subsection (4) to show that they concealed, destroyed or otherwise disposed of the information only—

(a) after the end of the period of six months beginning with the day on which they were last notified under section 180 (3) in respect of the information, or

(b) after an information notice has been issued to the person in respect of the information.

(6) In this section, a reference to concealing, destroying or otherwise disposing of information includes a reference to arranging for the concealment, destruction or disposal of information.

(7) This section does not apply in respect of a notice under section 183 (financial institutions).

Criminal liability of responsible persons

191

(1) If an offence under section 189 or 190 is committed by a body corporate or a partnership and—

(a) is committed with the consent or connivance of a responsible person, or

(b) is attributable to the neglect of a responsible person,

the responsible person commits the offence (as well as the body or partnership).

(2) A “responsible person” means—

(a) in relation to a body corporate other than one whose affairs are managed by its members—

(i) a director, manager, secretary or other similar officer of the body, or a person purporting to act in such a capacity, or

(ii) a shadow director within the meaning given in section 251 of the Companies Act 2006;

(b) in relation to a limited liability partnership or other body corporate whose affairs are managed by its members—

(i) a member exercising management functions, or purporting to do so, or

(ii) in the case of a limited liability partnership, a shadow member;

(3) In this section, a “shadow member” means a person in accordance with whose directions or instructions the members of the limited liability partnership are accustomed to act, save that a person is not a shadow member by reason only of the fact that the members act on advice given by that person in a professional capacity.

Criminal liability of responsible persons: no prosecution of recipient

192

(1) Subsection (2) applies where a body corporate or partnership that is the recipient of an information notice—

(a) fails to comply with the notice, or

(b) in purporting to comply with the notice, carelessly or deliberately provides inaccurate information.

(2) If the recipient’s failure or careless or deliberate provision of inaccurate information—

(a) occurred with the consent or connivance of a responsible person, or

(b) is attributable to the neglect of a responsible person,

the responsible person commits an offence.

(3) It is a defence for a person charged with an offence under subsection (2) to show that they or the recipient had a reasonable excuse.

(4) In this section—

(a) a reference to carelessness is a reference to a failure to take reasonable care, and

(b) “responsible person” has the same meaning as in section 191.

(5) This section does not apply in respect of a notice under section 183 (financial institutions).

Imprisonment or a fine

193

A person who commits an offence under section 189, 190 or 192 is liable—

(a) on summary conviction, to—

(i) in England and Wales, a fine, or

(ii) in Scotland or Northern Ireland, a fine not exceeding the statutory maximum, or

(b) on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine or both.

Civil sanctions

Penalty for failing to comply with a notice

194

(1) A recipient of an information notice is liable to a penalty if the recipient—

(a) fails to comply with the notice, and

(b) does so without reasonable excuse.

(2) The penalty under subsection (1) is—

(a) in relation to a notice under section 183 (financial institutions), £300;

(b) otherwise, £5,000.

(3) If a failure referred to in subsection (1) continues after the day on which a penalty is imposed in respect of it, the recipient is liable to a further penalty for each day on which the failure continues.

(4) The penalty under subsection (3) is—

(a) in relation to a notice under section 183 (financial institutions), an amount not exceeding £60;

(b) otherwise, an amount not exceeding £1,000.

(5) Before imposing a penalty under this section, an officer of Revenue and Customs must—

(a) notify the recipient of the fact that the officer considers subsection (1) or (3) to apply, and

(b) allow the recipient a period of 30 days beginning with the date of notification to make representations to HMRC.

(6) This section does not apply in relation to a failure to comply with a requirement imposed under section 185 (restriction on disclosure of notices).

Penalty for concealing information

195

(1) A recipient of an information notice is liable to a penalty if the recipient—

(a) is required to provide information under the notice issued, and

(b) conceals, destroys or otherwise disposes of the information—

(i) before the information has been provided in accordance with the notice, or

(ii) in circumstances where an officer of Revenue and Customs has notified the person in writing that the information must continue to be available (and has not withdrawn that notification).

(2) A person is liable to a penalty if—

(a) an officer of Revenue and Customs has notified the person under section 180 (3) that—

(i) the officer intends to issue an information notice to the person, and

(ii) certain information would be required under the notice, and

(b) the person conceals, destroys or otherwise disposes of the information.

(3) Subsection (2) does not apply if the person concealed, destroyed or otherwise disposed of the information only—

(a) after the end of the period of 6 months beginning with the day on which they were last notified under section 180 (3) in respect of the information, or

(b) after an information notice has been issued to the person in respect of the information.

(4) The penalty under subsection (1) or (2) is—

(a) in relation to a notice under section 183 (financial institutions), £300, or

(b) otherwise, £20,000.

(5) In this section, a reference to concealing, destroying or otherwise disposing of information includes a reference to arranging for the concealment, destruction or disposal of information.

Penalty for inaccurate information

196

(1) A recipient of an information notice is liable to a penalty if the recipient—

(a) in purporting to comply with the notice, carelessly or deliberately provides inaccurate information, or

(b) after purporting to comply with the notice—

(i) discovers that, in doing so, they provided inaccurate information, and

(ii) does not take reasonable steps to notify HMRC of that fact.

(2) The maximum penalty under subsection (1) is—

(a) in relation to a notice under section 183 (financial institutions), £3,000 for each inaccuracy, or

(b) otherwise, £20,000 for each inaccuracy.

(3) Before imposing a penalty under this section, an officer of Revenue and Customs must—

(a) notify the recipient of the fact that the officer considers subsection (1) to apply, and

(b) allow the recipient a period of 30 days beginning with the date of notification to make representations to HMRC.

(4) In this section, a reference to carelessness is a reference to a failure to take reasonable care.

Penalty for disclosing a notice

197

(1) A recipient of an information notice is liable to a penalty if the recipient—

(a) fails to comply with a requirement imposed under section 185 (restriction on disclosure of notices), and

(b) does so without reasonable excuse.

(2) The penalty under subsection (1) is—

(a) in relation to a notice under section 183 (financial institutions), £1,000, or

(b) otherwise, £10,000.

Penalty based on monies received

198

(1) Subsection (3) applies if—

(a) a penalty has been imposed on a person under section 194 (1) for failure to comply with a notice,

(b) the person, without reasonable excuse, continues to fail to comply with the notice,

(i) the person received money or money’s worth in connection with the contravening arrangements to which the notice relates, and

(ii) the continuing failure is significant, and

(d) the Upper Tribunal decides that it is appropriate for a penalty to be imposed under this section.

(2) For the purposes of subsection (1)(c)(ii), a continuing failure is significant if—

(a) it continues beyond the end of the period of six months beginning with the day on which the penalty referred to in subsection (1)(a) was imposed, or

(b) as a result of the continuing failure, it is or is likely to be significantly more difficult for HMRC to—

(i) monitor the compliance of a connected person with an anti-avoidance enactment, or

(ii) take, or consider whether HMRC could take, action against a connected person under an anti-avoidance enactment.

(3) The person is liable to a penalty equal to the amount of money or money’s worth received, or likely to have been received, by the person in connection with the contravening arrangements to which the notice relates.

(4) The amount of a penalty to which a person is liable under subsection (3) must be determined by the Upper Tribunal (with such determination being treated as assessment).

(5) An application to the Tribunal for the purposes of subsection (1)(d) or (4) may be made by an officer of Revenue and Customs and must be made before the end of the period of 12 months beginning with—

(a) in the case of a penalty relating to a notice against which the recipient may appeal under section 204, the latest of—

(i) the day on which the person became liable to a penalty under section 194 (1),

(ii) the last day of the period in which notice of appeal against the notice could have been given, and

(iii) if notice of such an appeal has been given, the day on which the appeal is determined or withdrawn, or

(b) in any other case, the day on which the person became liable to a penalty under section 194 (1).

(6) An officer of Revenue and Customs who makes an application for the purposes of subsection (1)(d) or (4) must notify the person concerned.

(7) For the purposes of this section, a reference to contravening arrangements to which a notice relates is a reference to arrangements by reference to which the person to whom the notice relates is considered to be a connected person under section 177 (1) (including, where the person is a connected person under section 177(1)(b), arrangements by reference to which the other person is considered to be a connected person).

(8) This section does not apply in relation to a notice under section 183 (financial institutions).

Increased daily default penalty

199

(1) An officer of Revenue and Customs may apply to the tribunal for a determination that an increased penalty should be available under section 194 (4) in respect of a person’s failure to comply with an information notice if—

(a) a penalty has been imposed under section 194 (3) (daily penalties for continuing failure) in respect of the failure,

(b) the failure continues after the end of the period of 30 days beginning with the day on which notification of the penalty under section 194 (3) was issued (see paragraph 46 to Schedule 36 to FA 2008), and

(2) If the tribunal decides that an increased penalty should be available under section 194 (4) in respect of a person’s failure, the tribunal must determine—

(a) the amount of the increased penalty, and

(b) the day from which it is to be applicable.

(3) The increased penalty is available under section 194 (4) in respect of the failure—

(a) from the day determined by the tribunal, and

(b) as though the figure in that subsection were replaced with the amount of the increased penalty.

(4) An increased penalty under this section may not exceed—

(a) in relation to a notice under section 183 (financial institutions), £1,000, or

(b) otherwise, £5,000.

(5) In determining the amount of the increased penalty, the tribunal must have regard to—

(a) the likely cost to the person of complying with the notice,

(b) any benefits to the person of not complying with the notice, and

(6) If the tribunal makes a determination under subsection (2), an officer of Revenue and Customs must notify the person to whom it relates of—

(a) the amount of the increased penalty, and

(b) the day from which it is to be applicable.

Sanctions: general

Extension of time periods

200

For the purposes of sections 189 to 199(sanctions), a failure of a person to do anything within a limited period of time is to be disregarded if the person did the thing within such further period of time, if any, as an officer of Revenue and Customs or the tribunal allowed.

Reasonable excuse

201

For the purposes of sections 189 (1)(a) (offence of failing to comply), 192 (criminal liability of responsible persons: no prosecution of recipient), 194 (penalty for failing to comply), 197 (penalty for disclosing) and 198 (penalty based on monies received)—

(a) an insufficiency of funds is not a reasonable excuse unless attributable to events outside the person’s control,

(b) if the person relies on any other person to do anything, that is not a reasonable excuse unless the first person took reasonable care to avoid the failure,

(c) if the person had a reasonable excuse for the failure but the excuse has ceased, the person is to be treated as having continued to have the excuse if the failure is remedied without unreasonable delay after the excuse ceased, and

(d) reliance on legal advice is to be taken automatically not to constitute a reasonable excuse if either—

(i) the advice was not based on a full and accurate description of the facts, or

(ii) the conclusions in the advice that the person relied upon were unreasonable.

Double jeopardy

202

A person is not liable to a penalty under this Chapter in respect of anything in respect of which the person has been convicted of an offence.

Assessment etc of penalties: application of Schedule 36 to FA 2008

203

(1) The following paragraphs of Schedule 36 to FA 2008 apply as set out below.

(2) Paragraph 46 (assessment of penalty) applies to—

(a) a penalty under sections 194 (failure to comply) and 195 (concealing information) as it applies to a penalty under paragraphs 39 and 40 of the Schedule;

(b) a penalty under section 196 (inaccurate information) as it applies to a penalty under paragraph 40A of the Schedule.

(3) Paragraph 51B(2) and (3) (assessment of a penalty for disclosure) apply to a penalty under section 197 (disclosure of a notice) as they apply to a penalty under paragraph 51B (1) of the Schedule.

(4) Paragraph 49 (enforcement of penalty) applies to a penalty under sections 194 to 197 as it applies to a penalty under paragraphs 39, 40 and 40A of the Schedule and, in the case of a penalty under section 197 (disclosure of a notice), the reference to notification under paragraph 46 of the Schedule is to be read as a reference to notification under paragraph 51B(2)(b) of the Schedule).

(5) Paragraph 51 (enforcement of a tax-related penalty) applies to a penalty under section 198 (penalties based on monies received) as it applies to a penalty under paragraph 50 of the Schedule.

Appeals

Appeals against notices

204

(1) A recipient of a notice under section 179 (connected persons) may appeal against the issue of the notice or any requirement in the notice.

(2) A recipient of a notice under section 180 (third parties) may appeal against the issue of the notice or any requirement in the notice on the grounds that it would be unduly onerous to comply with the notice or requirement.

(3) A recipient of a notice under section 182 (identification) may appeal against the issue of the notice or any requirement in the notice on the grounds that it would be unduly onerous to comply with the notice or requirement.

(4) Subsections (1) to (3) do not apply in relation to a notice that was issued with tribunal approval.

(5) Paragraph 32 of Schedule 36 to FA 2008 applies to appeals under this section as it applies to appeals under Part 5 of that Schedule (and references to information notices are to be read as references to notices under this Chapter).

Appeals against penalties

205

(1) A person may appeal against any of the following decisions—

(a) a decision of an officer of Revenue and Customs that a penalty is payable under sections 194 to 197, and

(b) a decision of an officer of Revenue and Customs as to the amount of a penalty under sections 194 to 197.

(2) Paragraph 48 of Schedule 36 to FA 2008 (procedure on appeal against penalty) applies to appeals under this section as it applies to appeals under paragraph 47 of that Schedule (and references to paragraph 47(1)(a) and (b) in paragraph 48 are to be read as references to subsection (1)(a) and (b) of this section).

Miscellaneous and interpretation

Interpretation

206

(1) In this Chapter—

“arrangements” includes any agreement, scheme, arrangement or understanding of any kind whether or not legally enforceable involving one or more transactions;

“authorised officer of Revenue and Customs” means an officer of Revenue and Customs who is, or is a member of a class of officers who are, authorised by the Commissioners for the purpose of this Chapter;

“Commissioners” means the Commissioners for His Majesty’s Revenue and Customs;

“document” includes any part of a document (and see subsection (2));

“HMRC” means His Majesty’s Revenue and Customs;

“information” includes a document (and see subsection (2));

“information notice” means a notice issued under any of sections 179 to 183;

“investigation of tax avoidance” includes the exercise of a function under an anti-avoidance enactment;

“recipient”, in relation to a notice, means the person to whom the notice is issued;

“tribunal” means the First-tier Tribunal or, where determined by or under the Tribunal Procedure Rules, the Upper Tribunal.

(2) For the purposes of this Chapter—

(a) a reference to providing information includes a reference to producing documents;

(b) a reference to a document is a reference to anything in which information of any description is recorded.

(3) Paragraphs 7 (2) to (4), 8, 15 and 16 of Schedule 36 to FA 2008 (provision relating to documents) apply in relation to documents required under this Chapter as they apply in relation to documents required under that Schedule.

Application of provisions of TMA 1970

207

The following provisions of TMA 1970 apply for the purposes of this Chapter as they apply for the purposes of the Taxes Acts—

(a) section 108 (responsibility of officers);

(b) section 114 (want of form);

Repeals

208

(1) Section 272A of FA 2014 is repealed.

(2) Subsection (1) comes into force on such day as the Treasury may by regulations made by statutory instrument appoint.

Chapter 4 — Miscellaneous

Legal professionals

Declaration in relation to privileged material

209

(1) Subsection (2) applies where—

(a) HMRC have notified a lawyer that they intend to publish, or are considering publishing, information identifying the lawyer under a provision listed in subsection (5), and

(b) the lawyer—

(i) intends to make representations to the effect that the information should not be published, but

(ii) will not be able to substantiate some or all of those representations without disclosing the content of privileged communications.

(2) A lawyer (whether or not the lawyer intending to make the representations) may make a declaration to the effect that—

(a) the representations are true, and

(b) the content of privileged communications would be sufficient (whether alone or with other information) to demonstrate this on the balance of probabilities.

(3) When considering whether the information referred to in subsection (1)(a) may be published, HMRC and, in the context of proceedings, a court or tribunal must treat a declaration made under subsection (2) and provided under a provision listed in subsection (5) as conclusive evidence of the information included in the declaration.

(4) But subsection (3) does not apply if HMRC, or the court or tribunal, is satisfied that the declaration includes any information that is incorrect.

(5) The provisions are—

(a) section 316C of FA 2004 (disclosure of tax avoidance schemes);

(b) paragraph 36 of Schedule 17 to F(No.2)A 2017 (disclosure of tax avoidance schemes: VAT and other indirect taxes);

(6) For the purposes of this section—

(a) references to a lawyer are references to a person in respect of whose communications a claim to legal professional privilege, or (in Scotland) to confidentiality of proceedings as between client and professional legal adviser, could be maintained in legal proceedings, and

(b) a communication is “privileged” if such a claim could be maintained in respect of it.

(7) In this section—

“HMRC” means—where the provision referred to in subsection (1)(a) is section 316C of FA 2004, HMRC as defined for the purposes of that section;where the provision referred to in subsection (1)(a) is paragraph 36 of Schedule 17 to F(No.2)A 2017, HMRC as defined for the purposes of that paragraph;where the provision referred to in subsection (1)(a) is section 86 of FA 2022—in subsection (1)(a), an officer of Revenue and Customs;in subsections (3) and (4), an authorised officer as defined for the purposes of that section;

“tribunal” means the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal.

(8) The Commissioners for His Majesty’s Revenue and Customs may by regulations make provision about—

(a) the form of a declaration made under subsection (2),

(b) the information to be included in a declaration,

(9) Regulations under this section—

(a) are to be made by statutory instrument, and

(b) may make different provision for different purposes.

(10) A statutory instrument containing regulations made under this section is subject to annulment in pursuance of a resolution of the House of Commons.

Penalties for an incorrect declaration

210

(1) A person who makes a declaration under section 209 (2) and carelessly or deliberately includes any incorrect information in the declaration is liable to a penalty not exceeding £10,000.

(2) Where—

(a) a person (“A”) provides a declaration under a provision listed in section 209 (5) which is made under section 209 (2) by another person,

(b) the declaration includes incorrect information, and

A is liable to a penalty not exceeding £10,000.

(3) For the purposes of subsection (1), incorrect information is included in a declaration carelessly if the person who makes the declaration has failed to take reasonable care to verify the information before including it.

Penalties: procedure, appeals etc

211

(1) Subject to subsection (2), a penalty under section 210 is to be treated as a penalty imposed under the Taxes Acts and, accordingly, is a penalty to be determined and imposed by an authorised officer under section 100(1) of TMA 1970.

(2) A penalty under section 210 is not required to be paid before the penalty becomes final.

(3) For the purposes of subsection (2) and sections 212 and 213 a penalty becomes “final” at the time when the period for any appeal or further appeal relating to the penalty expires or, if later, when any appeal or final appeal relating to the penalty is finally determined.

Publication following an incorrect declaration

212

(1) An authorised officer may publish information about a person where—

(a) the person has incurred a penalty under section 210 in relation to a declaration, and

(b) the penalty has become final.

(2) The information that may be published under this section is—

(a) the person’s name (including any trading name, previous name or pseudonym);

(b) any address used by the person;

(c) any other information that the authorised officer considers appropriate for the purposes of identifying the person or their business;

(d) details of the arrangements to which the declaration relates including the nature of the person’s involvement in those arrangements;

(e) details of the penalty imposed on the person under section 210.

(3) The information may be published in any way that the authorised officer considers appropriate.

(4) Before publishing information under this section, the authorised officer must—

(a) notify the person that they are considering doing so,

(b) give the person 30 days from that notification in which to make representations about whether it should be published, and

(5) In this section—

“arrangements” means—in relation to a declaration provided under section 316C(6)(b)(ii) of FA 2004, arrangements or proposed arrangements, with those terms having the same meaning as in that section;in relation to a declaration provided under paragraph 36(6)(b)(ii) of Schedule 17 to F(No.2)A 2017, arrangements or proposed arrangements, with those terms having the same meaning as in that paragraph;in relation to a declaration provided under section 86(5)(b)(ii) of FA 2022, a proposal or arrangements, with those terms having the same meaning as in that section;

“authorised officer” means an officer of Revenue and Customs authorised for the purposes of this section.

Time limits for publication

213

(1) Publication of any information under section 212 on the basis of a penalty incurred by a person may not take place after the end of the period of 12 months beginning with the date on which the penalty became final.

(2) Subsection (1) is not to be taken to prevent the re-publication, or continued publication, after the end of the period referred to in that subsection, of information published under section 212 before the end of the period.

Amendments to existing legislation: removal of privilege exemption

214

(1) In section 316C of FA 2004 (disclosure of tax avoidance schemes)—

(a) omit subsection (4A);

(b) in subsection (6)(b)—

(i) the words from “make representations” to the end become sub-paragraph (i);

(ii) after that sub-paragraph insert

, and (ii) where section 209 (2) of FA 2026 applies, provide a declaration made under that subsection substantiating those representations.

(2) In paragraph 36 of Schedule 17 to F(No.2)A 2017 (disclosure of tax avoidance schemes: VAT and other indirect taxes)—

(a) omit sub-paragraph (4A);

(b) in sub-paragraph (6)(b)—

(i) the words from “make representations” to the end become sub-paragraph (i);

(ii) after that sub-paragraph insert

, and (ii) where section 209 (2) of FA 2026 applies, provide a declaration made under that subsection substantiating those representations.

(3) In section 86 of FA 2022 (publication of information about tax avoidance schemes)—

(a) omit subsection (3)(b) (and the “or” before it);

(b) in subsection (5)(b)—

(i) the words from “make representations” to the end become sub-paragraph (i);

(ii) after that sub-paragraph insert

, and (ii) where section 209 (2) of FA 2026 applies, provide a declaration made under that subsection substantiating those representations.

Commencement

215

(1) Subject to subsection (2), sections 209 to 214 have effect from the day on which this Act is passed.

(2) The amendments made by section 214 have effect only in relation to conduct occurring on or after the day on which this Act is passed.

Disclosure of tax avoidance schemes: consequences for failure to comply

Penalties for non-disclosure of tax avoidance schemes

216

(1) In TMA 1970—

(a) omit section 98C (notifications under Part 7 of FA 2004);

(b) in section 100 (2) (determination of penalties by an officer of the Board), omit paragraph (f);

(2) In Part 7 of FA 2004 (disclosure of tax avoidance schemes)—

(a) in section 313 (4), for “98C of the Taxes Management Act 1970” substitute “315”;

(b) for section 315 substitute—

(315) (1) A person who fails to comply with a duty imposed by a provision mentioned in the first column of the table is liable to a penalty not exceeding the amount specified in relation to that provision in the second column.

*Provision*	*Maximum penalty amount*
Section 308(1) or (3) (promoter’s duty to notify)	The applicable rate for each day on which the person fails to comply or, if subsection (3) applies, £1 million
Section 309(1) (client’s duty to notify: no UK promoter)	The applicable rate for each day on which the person fails to comply or, if subsection (3) applies, £1 million
Section 310 (client’s duty to notify: no promoter)	The applicable rate for each day on which the person fails to comply or, if subsection (3) applies, £1 million
Section 310A (duty to provide further information)	The applicable rate for each day on which the person fails to comply or, if subsection (3) applies, £1 million
Section 310C (promoter’s duty to update information)	£5,000
Section 311C (duty to provide further information: section 311(3) case)	The applicable rate for each day on which the person fails to comply or, if subsection (3) applies, £1 million
Section 312(2) (promoter’s duty to notify client of SRN)	£5,000
Section 312ZA(2) (duty to notify client of SRN: section 311(3) case)	£5,000
Section 312A(2) or (2A) (client’s duty to notify other persons of SRN)	£5,000
Section 312B (client’s duty to provide client information to promoter or service provider)	£5,000
Section 313(1) or regulations under section 313(3) (other party’s duty to provide information)	The amount specified in subsection (4)
Section 313ZA (promoter’s or service provider’s duty to provide client information)	£5,000
Section 313ZB (service provider’s duty to provide other party’s information)	£5,000
Section 313ZC (employer’s duty to provide employee information)	£5,000
Section 313A (duty to provide statement on notifiability)	£5,000
Section 313B (duty to provide supporting evidence on notifiability)	£5,000
Section 313C (introducer’s duty to provide other person’s information)	£5,000
Section 316A (duty to provide information in addition to SRN to client or other persons)	£5,000

(2) The “applicable rate” means— (a) £600, or (b) where an order has been made under section 306A or 314A (orders about notifiability) in respect of the arrangements or proposal in relation to which the person fails to comply— (i) £600 for each day falling before the end of the period of ten days beginning with the day on which the order was made, and (ii) £5,000 for each day falling after the end of that period. (3) This subsection applies where an authorised officer considers that the amount otherwise specified in relation to the provision is inappropriately low. (4) The amount specified for section 313(1) or regulations under section 313(3) is— (a) £10,000, if the person has failed to comply with the section or regulations on two or more other occasions during the period of 36 months ending with the date of the current failure, (b) £7,500, if the person has failed to comply with the section or regulations on one other occasion during the period of 36 months ending with the date of the current failure, or (c) £5,000, in any other case. (5) In subsection (1), a reference to a day on which a person fails to comply with a duty is a reference to a day that— (a) begins after the day by which the person was required to comply with the duty, and (b) ends before the earlier of— (i) the day on which the person complies with the duty, (ii) the day on which any reference number is allocated to the arrangements or proposed arrangements concerned in the circumstances described in subsection (6), and (iii) the day on which a penalty under subsection (1) is imposed in relation to the failure. (6) The circumstances are— (a) the duty referred to in subsection (5) is a duty imposed by section 308(1) or (3), 309(1) or 310, and (b) it is a case within section 311(3). (315A) (1) If— (a) a penalty under section 315 is imposed in relation to a person’s failure to comply with a duty, and (b) after the penalty has been imposed, the person continues to fail to comply with the duty, the person is liable to a further penalty not exceeding the applicable rate (as defined in section 315 (2)) for each day on which the failure continues. (2) Subsection (1) does not apply to a failure to comply with a duty imposed by section 313(1) or regulations under section 313(3). (315B) (1) A penalty under this Part is to be treated as a penalty under a provision of the Taxes Acts and, accordingly, is a penalty to be determined and imposed by an authorised officer under section 100(1) of TMA 1970. (2) In determining an amount of a specified penalty (including considering whether an amount is inappropriately low under section 315 (3)), the authorised officer must have regard to all relevant considerations, including— (a) the desirability of the penalty being set at a level which appears appropriate for deterring the person, or other persons, from similar failures to comply on future occasions; (b) the amount of any fees received, or likely to have been received, by the person in connection with the proposal or arrangements concerned; (c) in the case of a person entering into the arrangements, the amount of any advantage gained, or sought to be gained, by that person. (3) In this section, a “specified penalty” is a penalty under section 315 that is imposed in relation to a person’s failure to comply with a duty imposed by section 308(1) or (3), 309(1), 310, 310A or 311C. (315C) A failure to do anything required to be done within a limited period of time does not give rise to liability to a penalty under section 315 or 315A if the person did it within such further time, if any, as an officer of Revenue and Customs or the tribunal may have allowed. (315D) (1) A person is deemed not to have failed to comply with a duty imposed by a provision mentioned in the first column of the table in section 315 (1) if the person had a reasonable excuse for the failure and— (a) the reasonable excuse continues to apply, or (b) the reasonable excuse has ceased to apply, but the person complied with the duty without unreasonable delay after the cessation. (2) Where an order is made under section 306A or 314A— (a) the order is not evidence that a person either does or does not have a reasonable excuse for non-compliance before the order was made, and (b) the person identified in the order as the promoter cannot rely on doubt as to notifiability as a reasonable excuse for a failure to comply with section 308. (3) Where a person fails to comply with— (a) section 309 and the promoter for the purposes of that section is a monitored promoter, or (b) section 310 and the arrangements for the purposes of that section are arrangements of a monitored promoter, then any legal advice which was given or procured by that monitored promoter and which the person took into account is to be disregarded in determining whether the person has a reasonable excuse for the failure. (4) In determining whether or not a person who is a monitored promoter has a reasonable excuse for a failure to do anything required to be done, reliance on legal advice does not constitute a reasonable excuse if either— (a) the advice was not based on a full and accurate description of the facts, or (b) the conclusions in the advice that the person relied on were unreasonable. (5) For the purposes of this section, “monitored promoter” has the meaning given by section 244(5) of FA 2014. (315E) (1) The Treasury may by regulations make provision for the purpose of varying any of the amounts specified in section 315 or 315A. (2) Regulations under this section— (a) must be made by statutory instrument, and (b) may not be made unless a draft has been laid before and approved by resolution of the House of Commons.

“authorised officer” means an officer of Revenue and Customs authorised by His Majesty’s Revenue and Customs for the purposes of this Part or, as the case may be, section 100 of TMA 1970;

“Taxes Acts” has the same meaning as in TMA 1970 (see section 118(1) of that Act);

(3) In Part 2 of Schedule 17 to F(No.2)A 2017 (disclosure of tax avoidance schemes: VAT and other indirect taxes)—

(a) in the cross heading before paragraph 39 omit “(apart from paragraph 26)”;

(b) for paragraphs 39 to 44 substitute—

(39) (1) A person who fails to comply with a duty imposed by a provision of Part 1 of this Schedule mentioned in the first column of the table is liable to a penalty not exceeding the amount specified in relation to that provision in the second column.

Provision	Maximum penalty amount
Paragraph 11(1) or 12(1) (promoter’s duty to notify)	The applicable rate for each day on which the person fails to comply or, if sub-paragraph (3) applies, £1 million
Paragraph 17(2) (client’s duty to notify: no UK promoter)	The applicable rate for each day on which the person fails to comply or, if sub-paragraph (3) applies, £1 million
Paragraph 18(2) (client’s duty to notify: no promoter)	The applicable rate for each day on which the person fails to comply or, if sub-paragraph (3) applies, £1 million
Paragraph 19 (duty to provide further information)	The applicable rate for each day on which the person fails to comply or, if sub-paragraph (3) applies, £1 million
Paragraph 21 (promoter’s duty to update information)	£5,000
Paragraph 22C (duty to provide further information: paragraph 22(3) case)	The applicable rate for each day on which the person fails to comply or, if sub-paragraph (3) applies, £1 million
Paragraph 23(2) (promoter’s duty to notify client of SRN)	£5,000
Paragraph 23A(2) (duty to notify client of SRN: paragraph 22(3) case)	£5,000
Paragraph 24(3) (client’s duty to notify other persons of SRN)	£5,000
Paragraph 25(2) (client’s duty to provide client information to promoter or service provider)	£5,000
Paragraph 26(1) or regulations under paragraph 26(3) (other party’s duty to provide information)	The amount specified in sub-paragraph (4)
Paragraph 27(3) (promoter’s or service provider’s duty to provide client information)	£5,000
Paragraph 28 (service provider’s duty to provide other party’s information)	£5,000
Paragraph 29 (duty to provide statement on notifiability)	£5,000
Paragraph 30 (duty to provide supporting evidence on notifiability)	£5,000
Paragraph 31 (introducer’s duty to provide other person’s information)	£5,000
Paragraph 33 (duty to provide information in addition to SRN to client or other persons)	£5,000

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