Section 171 | Civil penalties

(1)A recipient of a promoter action notice is liable to a penalty if the recipient—

(a)fails to comply with the notice, and

(b)does so without reasonable excuse.

(2)The maximum penalty under this section is £1,000 for each day on which the recipient failed, without reasonable excuse, to comply with the notice.

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

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

(b)allow the recipient 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 likely cost to the recipient of complying with the notice;

(b)any benefit for the recipient of not complying with the notice;

(c)whether and to what extent the recipient cooperated with HMRC or made efforts to comply with the notice.

(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)In paragraph 5(6) of Schedule 13 to FA 2020 (joint and several liability of company directors etc) after paragraph (g) (inserted by section 162(8)) insert—

(h)section 171 of FA 2026 (promoter action notices: penalties).