GIM6580 | Technical provisions: Schedule 11 FA2007: paragraph 2 enforcement: penalties for failure to comply with a notice

FA08/SCH36/PARA7 applies to a notice under FA07/SCH11/PARA2 as it applies to a notice under the Schedule 36 powers. The guidance at EM2260 applies should a general insurer fail to comply with a notice under FA07/SCH11/PARA2.

It is conceivable that a general insurer might claim that the failure to comply with a notice under FA07/SCH11/PARA2 is on the part of the third party appointed to make the report. But it is unlikely that such an event will arise in practice and, if it did, that there would be grounds for imposing a penalty on the general insurer for failure to comply with the notice.

A careful review of the reasons for any failure to comply with a notice under FA07/SCH11/PARA2 would be needed, including where appropriate an explanation from any third party appointed to prepare the report. Time limits would need to be fixed accordingly, and consideration given to the need to appoint an alternative third party to prepare the report.

CT&VAT (Technical) Insurance Group can assist HMRC officers in cases of difficulty - see the ‘Technical Help’ link on left hand bar.