SolvedCH178230 | Sanctionable conduct by tax advisers: penalty for sanctionable conduct: maximum and minimum penalties
From HM Revenue & Customs · Compliance Handbook
Penalties are calculated based on the potential lost revenue (PLR) attributable to the tax adviser’s sanctionable conduct.
The minimum penalty for sanctionable conduct is £7,500. Where the PLR cannot be determined, or there is no attributable PLR, the minimum penalty of £7,500 should be used.
The maximum penalty is
70% of the PLR up to £1m for the first penalty
85% of the PLR up to £5m for the second to fifth penalty in a 20 year period (where no more than four years have elapsed between penalties)
100% of the PLR with no maximum amount for the sixth or subsequent penalty in a 20 year period (where no more than four years have elapsed between penalties)
We must also have regard to any disclosure by the tax adviser when assessing the penalty amount. A penalty is reduced based on the quality of the disclosure. The minimum penalty percentages are:
35% of the PLR for prompted disclosure (see )
20% of the PLR for unprompted disclosure (see )
Unless there is a special reduction, see , the minimum penalty for sanctionable conduct remains £7,500 even where the tax adviser makes a disclosure.