735. Penalties for failure to pay tax on time.

A penalty is payable by a person ('P') where P fails to pay an amount of income tax, capital gains tax or corporation tax on or before the specified date (the 'penalty date')1. If Her Majesty's Revenue and Customs think it right because of special circumstances2, they may reduce a penalty under any of these provisions3.

Where P is liable for a penalty under any of these provisions, Her Majesty's Revenue and Customs must assess the penalty, notify P, and state in the notice the period in respect of which the penalty is assessed4. A penalty under any of these