Section 212B | Penalty: partnerships ^F1

(1)This section applies if, in respect of a partnership—^F1

(a)the responsible partner 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 is to be counteracted, and

(b)the tax advantage, so far as arising to a partner (P) in the partnership, has been counteracted by the making of adjustments under section 209.^F1

(2)P is liable to pay a penalty of an amount equal to 60% of the value of the counteracted tax advantage.^F1

(3)Schedule 43C—^F1

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

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

(4)For the meaning of “the responsible partner” see paragraph 2 of Schedule 43D.^F1