657. Penalties for failure to notify.

A penalty is payable by a person ('P') who fails to comply with the obligation1 to give notice that he is chargeable to income tax or capital gains tax in any tax year2. Similarly, a penalty is payable by a person who fails to comply with the obligation3 to give notice of chargeability to corporation tax4. The amount of the penalty depends upon whether the failure was deliberate and if it was concealed5.

If the person has made a prompted or unprompted disclosure the penalty may be reduced by HM Revenue and Customs6. If HMRC think it right because of