Section 210 | Reduction of a section 208 penalty for co-operation

(1)Where—

(a)P is liable to pay a penalty under section 208 of the amount specified in section 209(1),

(b)the penalty has not yet been assessed, and

(c)P has co-operated with HMRC,

HMRC may reduce the amount of that penalty to reflect the quality of that co-operation.

(2)In relation to co-operation, “quality” includes timing, nature and extent.

(3)P has co-operated with HMRC only if P has done one or more of the following—

(a)provided reasonable assistance to HMRC in quantifying the tax advantage;

(b)counteracted the denied advantage;

(c)provided HMRC with information enabling corrective action to be taken by HMRC;

(d)provided HMRC with information enabling HMRC to enter an agreement with P for the purpose of counteracting the denied advantage;

(e)allowed HMRC to access tax records for the purpose of ensuring that the denied advantage is fully counteracted.

(4)But nothing in this section permits HMRC to reduce a penalty to less than 10% of the value of the denied advantage.