UU����ֱ��

Disclosure ― your aim

There is a difference between disclosing critical information in a tax return to protect a taxpayer from discovery and making a disclosure of an inaccuracy on a return.

See the Penalty reductions for inaccuracies guidance note for further details of such a disclosure. See also the Making disclosures of irregularities guidance note for information on the obligations on an adviser in respect of irregularities in a client’s tax affairs.

Adequate disclosure on a return also protects a client from a penalty if the treatment adopted proves to be incorrect. HMRC’s powers under FA 2007, Sch 24 deem that a careless inaccuracy incurs a penalty. However, where ‘reasonable care’ has been taken a penalty should not be charged. CH81010 details the circumstances