COP9 and the Contractual Disclosure Facility

~4 min read

Category: Tax investigations and HMRC powers · Reviewed by the Apex broking team · Last reviewed 2026-08-20

In short: Code of Practice 9 (COP9) is the procedure under which HMRC’s Fraud Investigation Service investigates suspected serious tax fraud by civil means. It is issued with the offer of the Contractual Disclosure Facility (CDF): if the taxpayer admits the deliberate conduct and makes a complete disclosure, HMRC undertakes not to open a criminal investigation into the fraud disclosed. Because fee protection policies exclude fraud, COP9 sits outside typical fee protection cover.

Category: Tax investigations and HMRC powers Also known as: COP9, CDF, Code of Practice 9 investigation Related concepts: Code of Practice 8, discovery assessment

Definition

Code of Practice 9 is the published code under which HMRC investigates cases where it suspects serious tax fraud but chooses to work by civil rather than criminal process. A COP9 letter is issued by the Fraud Investigation Service together with an offer of the Contractual Disclosure Facility. The recipient has a fixed period — 60 days under the published code — to accept or reject the offer.

The Contractual Disclosure Facility in outline

The CDF is a contract. In outline: the taxpayer accepts the offer by admitting that deliberate conduct brought about a loss of tax, submits an outline disclosure of that conduct, and then cooperates in producing a full disclosure — commonly a detailed report covering the years and taxes affected — together with payment of the tax, interest and penalties due. In return, HMRC undertakes not to open a criminal investigation with a view to prosecution in respect of the fraud that is disclosed. The protection extends only to what is disclosed: frauds omitted from the disclosure remain open to criminal investigation, as does providing false statements within the process itself.

Rejection or denial

If the recipient rejects the offer or denies that any deliberate conduct occurred, the CDF’s protection is not engaged. HMRC then proceeds with its own investigation, civil or criminal, on the material available. The decision whether to accept — which requires admitting deliberate conduct — is therefore consequential in both directions, and COP9 recipients are advised by specialists for that reason.

The boundary case for fee protection

COP9 is the clearest boundary marker for tax fee protection insurance. Fee protection policies respond to the professional costs of enquiries and compliance checks, and their wordings carve out fraud and dishonesty; a procedure whose entry condition is suspected serious fraud — and whose acceptance route requires an admission of deliberate conduct — falls outside that cover. The professional fees of a COP9 case, which are typically substantial, are in practice borne by the taxpayer. This is the contrast usually drawn with Code of Practice 8, where fraud is not alleged and the insurance position turns on the individual wording.

Why it matters

COP9 concentrates three serious matters in one letter: an allegation of fraud, a time-limited contractual offer, and the prospect of criminal investigation if the process is mishandled. For advisers and insured clients alike it also defines the outer edge of fee protection — the point at which an HMRC intervention stops being an insurable professional-fees risk.

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Apex Insurance Brokers serves UK professional services firms and commercial businesses. Call 0117 325 0027, email info@apexinsurancebrokers.co.uk, or request a quotation.

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