You must check the date from which these rules apply for
the tax or duty you aredealing with. SeeCH81011for full details.
We may use our discretion to reduce a penalty because of
special circumstances.
Reducing a penalty includes
Staying a penalty means stopping or postponing enforcement of a
penalty. Agreeing a compromise allows us to forego part of a
penalty.
Special circumstances do not include
The law ensures that the amount of a penalty is proportionate to the inaccuracy by
The size of the resulting penalty is therefore not a special
circumstance.
We will only consider the special reduction of a penalty
where exceptional circumstances are identified that cannot be taken
into account in arriving at the reduction for disclosure, see
CH82410. This means that when you are
determining the quality of a disclosure you should only consider
those factors that are relevant, see
CH82430. You should not be influenced by
other factors.
Where a person requests a special reduction you should
establish the facts and consider all of the relevant factors before
reaching a decision. Make sure that you make a full record in the
file of why you reached your decision and the specific areas you
considered. If you think that a special reduction may be
appropriate you
must submit the case to
A person cannot appeal against our decision not to allow a
special reduction, but they can appeal against the amount of the
penalty we impose, see
CH84040.
The appeal tribunal can either apply our view of the special
reduction to the penalty or can apply a different reduction where
it believes it appropriate.
Appeals are covered in more detail at
CH84000.
