Introduction Interaction with other penalties and late payment surcharges
31.Paragraph 17 sets out to what penalties HMRC should charge if a taxpayer is liable to more than one penalty which is determined by reference to the same tax liability (which could for example include late payment surcharges, penalties for incorrect returns etc), subject to some exclusions set out in paragraph 18(2). Paragraph 18 states that where a taxpayer is liable to a penalty under this Schedule, it is to be reduced by the amount of any other penalty incurred by P that is determined by reference to the same tax liability.
32.Paragraph 17(3) states that tax-geared penalties under this schedule may not exceed 100 per cent of the relevant liability to tax.