HMRC have released a call for evidence on 'Individual Savings Accounts: Compliance and Penalties'. It considers the implications of a failure to comply with regulations for all types of ISA. There is concern that the existing penalty provisions do not provide an effective deterrent to non-compliance.

At a glance

Stakeholder feedback is sought on the following:

  • Whether there are alternative ways in which non-compliance could be addressed without the need for financial penalties.
  • Whether there should be different levels of penalty for different breaches and should penalties be charged irrespective of whether there is a tax loss.
  • What sorts of errors are considered minor and which are more significant.  
  • Whether the existing penalties were appropriate and proportionate.
  • Whether there should be an appeal process or the consideration of mitigating circumstances when it comes to the imposition of penalties.

The consultation closes on 21 February 2022.

Useful guides on this topic

ISA guide
What is an ISA? What are the limits? How are ISAs taxed?

ISA limits
This a freeview 'At a glance' guide to ISA investment limits each year.

External Links

Individual Savings Accounts: Compliance and Penalties

Squirrel ad

Are you enjoying our content? 

Thousands of accountants and advisers and their clients use as their primary TAX resource.

Register with us now to receive our receive our FREE SME Topical Tax Update & newletter