CH122170 - Offshore matters: asset-based penalties: definitions: combined penalty

A penalty that relates to both offshore matters and domestic matters is a ‘combined penalty’.

The penalty is referred to as a ‘combined penalty’ if a penalty is charged under

• Paragraph 1 Sch 24 FA 2007
• Paragraph 1 Sch 41 FA 2008
• Paragraph 6 Sch 55 FA 2009

When calculating offshore PLR:

• Income and gains relating to domestic matters are taken to have been taxed before income and gains relating to offshore matters and offshore transfers.
• Income and gains relating to taxes that are not capital gains tax, inheritance tax or asset-based income tax are taken to have been taxed before income and gains relating to capital gains tax, inheritance tax and asset-based income tax.
• Income and gains relating to asset-based income tax are to be taken to have been taxed before offshore income and gains relating to capital gains tax.

If it cannot be determined

• whether income or gains relate to an offshore matter or offshore transfer or to a domestic matter, or
• whether income or gains relate to capital gains tax, asset-based income tax or inheritance tax,

then a just and reasonable apportionment shall be made.