Section 162 | Civil penalties

(1)A person who promotes arrangements in breach of section 159(1) is liable to a penalty.

(2)The maximum penalty under this section is the sum of—

(a)£1,000,000, and

(b)£5,000 for each person who participated in the arrangements.

(3)Before imposing a penalty under this section, an authorised officer of Revenue and Customs must—

(a)notify the person of the fact that the authorised officer considers subsection (1) to apply, and

(b)allow the person 30 days from the date of notification to make representations to HMRC.

(4)In imposing a penalty under this section, an authorised officer of Revenue and Customs must have regard to—

(a)the number of persons participating, or targeted to participate, in the arrangements,

(b)the amount of tax that was likely at risk in connection with the arrangements,

(c)whether and to what extent the person cooperated with HMRC, and

(d)whether the wrongdoing was repeated, or continued over an extended period.

(5)A penalty imposed under this section is to be treated as a penalty determined under section 100(1) of TMA 1970.

(6)A penalty imposed under this section is to carry interest in accordance with section 101 of FA 2009.

(7)A person is not liable to a penalty under this section in respect of anything for which the person has been convicted of an offence.

(8)In paragraph 5(6) of Schedule 13 to FA 2020 (joint and several liability of company directors etc) after paragraph (f) insert—

(g)section 162 of FA 2026 (prohibition of promotion of certain tax avoidance arrangements: penalties).