CH83020 - Penalties for Inaccuracies: How to Process the Penalty: Penalty assessments
You must check the date from which these rules apply for the tax or duty you are dealing with. See CH81011 for full details.
Once a person has become liable to a penalty for an inaccuracy or under-assessment we will send them a penalty assessment. This person may be
- the person who gave us the inaccurate document, and/or
- the person who deliberately caused the inaccuracy in another person’s document, see CH81075.
The penalty assessment will tell the person what they owe and when they must pay it.
The penalty assessment is enforceable in the same way as an assessment ‘to tax’. This means that the rules that apply to the tax or duty that the penalty relates to also apply to the penalty assessment. So for Inheritance Tax, the penalty assessment is enforceable in the same way as a notice of determination.
Before you issue the penalty assessment you must decide
If you intend to include the penalty in a contract settlement you will still need to tell the person how much the penalty is but the contract will stand in place of the assessment. You will find guidance on contract settlements at EM6000 for direct taxes and IHTM36221 for Inheritance Tax.
