Offshore Funds: Reporting funds: breaches of reporting fund conditions: types of breaches: minor breaches
A breach of a requirement imposed by the regulations is a ‘minor breach’ if it is not specified as a serious breach (under regulations 110 to 113) and provided the fund or the fund manager has a reasonable excuse for the breach, or the breach is inadvertent and remedied as soon as reasonably possible.
See IFM12732 for the consequences of minor breaches.
Where a reporting fund corrects what would otherwise be regarded as a minor breach without any HMRC intervention (that is, HMRC do not ask the fund to provide them with information, etc, under regulation 107) then no breach will be considered to arise at all. For these purposes, if HMRC request further information to assist a fund in correcting a breach which the fund has drawn to HMRC attention then that will not, of itself, constitute an intervention.