IFM09780 | Administrative requirements: Penalties: Penalty for failures to prepare accounts in prescribed manner - Regulation 40(1)

If the RIF operator fails without reasonable excuse to prepare accounts in the prescribed manner (IFM09710), the operator is liable to a penalty not exceeding £3,000 (“the statutory maximum”). This penalty is provided for by regulation 40(1) of The Co-ownership Contractual Schemes (Tax) Regulations 2025, S.I. 2025/200 (‘SI 2025/200’).

TMA1970/S100(1) provides that the authorising officer must determine the appropriate level of penalty within the statutory maximum. The Enquiry Manual from EM6065 onwards contains the abatement factors used to arrive at the appropriate amount.