Follower Notices and penalties

We are seeking views on proposed changes to penalties that may be charged to people receiving Follower Notices as a result of using avoidance schemes.

The proposals would:

• reduce the rate of Follower Notice penalty from 50% to 30% of the tax in dispute
• introduce a penalty of 20% for those who the tribunal decides acted unreasonably by continuing their litigation against HMRC’s decision

The consultation should be read alongside the draft legislation and the Tax Information and Impact Note, published above.