(1) Section 48 of the Finance Act, 1986, is hereby amended -
(a) by the substitution of the following subsection for subsection (2), apart from the proviso thereto:
"(2) Where, in relation to a year of assessment or accounting period, a chargeable person fails to deliver a return of income on or before the specified date in relation to the return of income, any amount of tax for that year of assessment or accounting period which, apart from this section, is or would be contained in an assessment to tax made or to be made on the chargeable person shall be increased by an amount (hereafter in this subsection referred to as the 'surcharge') equal to -
(a) 5 per cent, of that amount of tax, subject to a maximum increased amount of £10,000, where the return of income is delivered before the expiry of two months from the specified date, and
(b) 10 per cent, of that amount of tax, subject to a maximum increased amount of £50,000, where the return of income is not delivered before the e