SDLTM86190 - Compliance: Penalties

Legislation: Penalty for incorrect or uncorrected returns FA03/SCH10/PARA8: Application

This legislation applies where a person fraudulently or negligently

• delivers an incorrect return
• discovers that they delivered an incorrect return and they do not remedy the error without unreasonable delay i.e. the incorrect return was promptly disclosed to HM Revenue & Customs

In each case the tax-geared penalty is based on a maximum equal to the difference between

• the amount of tax correctly payable for the transaction
• the amount which would be payable on the incorrect return

The offence is committed on the date when the return is delivered. For a land transaction return, this will be the date on which it is logged.