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

• 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 (both):

• the quality of disclosure (see CH122725)

• whether it is prompted or unprompted (see CH122600)