CH122180 - Offshore matters: asset-based penalties: definitions: investigation period and penalty restrictions

Investigation period

Only one asset-based penalty is payable in any investigation period in relation to any given asset.

You cannot charge an asset-based penalty in relation to the same asset in more than one investigation. To ensure this does not happen the legislation introduces the concept of an 鈥榠nvestigation period鈥�. This is defined as

  • the earliest period starting on 1 April 2017 and ending with the last day of the last tax year before the person was notified of an asset-based penalty in respect of an asset, and
  • subsequent periods beginning with the day of the last tax year before the person is notified of a subsequent asset-based penalty in respect of the asset.

Different investigation periods may apply in relation to different assets.

Penalty restrictions

If the potential lost revenue (PLR) threshold is met and a standard offshore penalty charged for more than one tax year in the same investigation period, the asset-based penalty is charged for the year with the highest offshore PLR.