Section 212A | Penalty ^F1

(1)A person (P) is liable to pay a penalty if—^F1

(a)P has been given a notice under—^F1

(i)paragraph 12 of Schedule 43,^F1

(ii)paragraph 8 or 9 of Schedule 43A, or^F1

(iii)paragraph 8 of Schedule 43B,^F1

stating that a tax advantage arising from particular tax arrangements is to be counteracted,

(b)a tax document has been given to HMRC on the basis that the tax advantage arises to P from those arrangements,^F1

(c)that document was given to HMRC—^F1

(i)by P, or^F1

(ii)by another person in circumstances where P knew, or ought to have known, that the other person gave the document on the basis mentioned in paragraph (b), and^F1F2

(d)the tax advantage has been counteracted by the making of adjustments under section 209.^F1

(2)The penalty is 60% of the value of the counteracted advantage.^F1

(3)Schedule 43C—^F1

(a)gives the meaning of “the value of the counteracted advantage”, and^F1

(b)makes other provision in relation to penalties under this section.^F1

(4)In this section “tax document” means any return, claim or other document submitted in compliance (or purported compliance) with any provision of, or made under, an Act.^F1

(5)In this section the reference to giving a tax document to HMRC is to be interpreted in accordance with paragraph 11(g) and (h) of Schedule 43C.^F1