Section 209 | Amount of a section 208 or 208A penalty

(1)The penalty under section 208 is 30% of the value of the denied advantage.

(1A)The penalty under section 208A is 20% of the value of the denied advantage.

(2)Schedule 30 contains provision about how the denied advantage is valued for the purposes of calculating penalties under this section.

(3)Where P before the relevant time —

(a)amends a return or claim to counteract part of the denied advantage only, or

(b)takes all necessary action to enter into an agreement with HMRC (in writing) for the purposes of relinquishing part of the denied advantage only,

in subsections (1) , (1A) and (2) the references to the denied advantage are to be read as references to the remainder of the denied advantage.

(4)The “relevant time” means—

(a)in the case of a penalty under section 208, the specified time;

(b)in the case of a penalty under section 208A, the day after the end of the appeal period.

(5)“The appeal period” has the same meaning for the purposes of this section as it has for the purposes of section 208A (see section 208A(10) and (11)).