CH122310 - Offshore matters: asset-based penalties: identification and valuation of assets: general rules

It is important to be able to correctly identify and value assets for calculating the amount of the asset-based penalty.

The rules for identifying and valuing the asset or assets depend on whether the principal tax at stake is capital gains tax, inheritance tax or income tax.

The principal tax at stake

  • where the standard offshore tax penalty (or penalties) relate to only one type of tax, is the tax to which that standard offshore tax penalty (or penalties) relates
  • where the standard offshore tax penalty (or penalties) relate to more than one type of tax, is the tax which gives rise to the highest offshore potential lost revenue (PLR) value.

There is only one principal tax at stake in relation to an investigation period.
Asset-based penalties should not be charged in respect of multiple assets for different taxes in the same tax year.

For further information on the valuation of an asset that is jointly held, see CH122320.

For further information on identifying the value of the asset see CH122330 to CH122360

FA16/Sch 22/Para 10