Finance Act 2004

PenaltiesU.K.

257Registered pension scheme returnU.K.

(1)If the scheme administrator of a registered pension scheme fails to comply with a notice under section 250 (registered pension scheme return), the scheme administrator is liable to a penalty of £100.

(2)If the failure continues after a penalty is imposed under subsection (1), the scheme administrator is liable to a further penalty not exceeding £60 for each day on which the failure continues after the day on which that penalty was imposed (but excluding any day for which a penalty under this subsection has already been imposed).

(3)No penalty may be imposed under subsection (1) or (2) in respect of a failure after it has been remedied.

(4)If the scheme administrator of a registered pension scheme fraudulently or negligently—

(a)makes an [F1inaccurate] return required by a notice under section 250, or

(b)delivers any [F1inaccurate] accounts, statements or other documents with such a return,

the scheme administrator is liable to a penalty not exceeding £3,000.

258Information required by regulationsU.K.

(1)In section 98 of TMA 1970 (penalties for failure to provide information and providing false information), in the second column of the Table, insert at the appropriate place— “regulations under section 251(1)(a) or (4) of the Finance Act 2004;”.

(2)A person who fails to comply with regulations under section 251(1)(b) (preservation of documents) is liable to a penalty not exceeding £3,000.

F2259Documents and particulars required by noticeU.K.

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260Accounting returnU.K.

F3(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F3(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F3(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F3(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F3(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F4(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F4(7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

261Enhanced F5... allowance regulations: documents and informationU.K.

(1)This section applies where an individual fraudulently or negligently—

(a)produces or makes available an [F6inaccurate] document, or produces an [F6inaccurate] certificate, in connection with any matter registered in accordance with enhanced F7... allowance regulations, or

(b)provides false information in connection with any such matter,

and the condition in subsection (2) is met.

(2)The condition is that—

(a)the amount of the individual’s [F8lump sum allowance or lump sum and death benefit allowance] at the time which is relevant for the purposes of this paragraph, or

(b)the amount of the pension commencement lump sums [F9or the uncrystallised funds pension lump sums] to which the individual may be entitled at the time which is relevant for the purposes of this paragraph,

would be greater than it actually is were the document or certificate correct or the information true.

(3)The individual is liable to a penalty not exceeding 25% of the relevant excess.

(4)In a case within paragraph (a) of subsection (2), the relevant excess is the difference between what would be the amount of the individual’s [F10lump sum and death benefit allowance] at the time which is relevant for the purposes of that paragraph (were the document or certificate correct or the information true) and [F11the actual amount of the individual’s lump sum and death benefit allowance at that time.]

(5)The time which is relevant for the purposes of paragraph (a) of subsection (2)—

(a)where [F12a relevant benefit crystallisation event within the meaning of section 637S of ITEPA 2003 (availability of individual’s lump sum and death benefit allowance)] has occurred in relation to the individual since the document was produced or made available, the certificate produced or the information provided (but before a penalty under this section is imposed), is the time when [F13the relevant benefit crystallisation event] occurred, and

(b)otherwise, is the time when the document was produced or made available, the certificate produced or the information provided.

(6)In a case within paragraph (b) of subsection (2), the relevant excess is the difference between—

(a)what would be the amount of the pension commencement lump sums [F14or the uncrystallised funds pension lump sums] to which the individual may be entitled at the time which is relevant for the purposes of that paragraph (were the document or certificate correct or the information true), and

(b)the actual amount at that time of the pension commencement lump sums [F15or the uncrystallised funds pension lump sums] to which the individual may be entitled.

(7)The time which is relevant for the purposes of paragraph (b) of subsection (2) is the time when the document was produced or made available, the certificate produced or the information provided.

262Enhanced F16... allowance regulations: failures to complyU.K.

An individual who fails—

(a)to produce or make available any document required to be produced by enhanced F17... allowance regulations,

(b)to produce any certificate required to be produced by enhanced F18... allowance regulations, or

(c)to provide any information required to be provided by enhanced F19... allowance regulations,

is liable to a penalty not exceeding £3,000.

263F20... Enhanced protection: benefit accrualU.K.

(1)This section applies where—

(a)paragraph 12 of Schedule 36 ([F21enhancement of allowances]: enhanced protection) applies in relation to an individual, and

(b)relevant benefit accrual occurs in relation to the individual (as to which see paragraph 13 of that Schedule).

(2)If the individual fails to notify the Inland Revenue of the relevant benefit accrual within the period of 90 days beginning with the day on which it occurs, the individual is liable to a penalty not exceeding £3,000.

264False statements etcU.K.

(1)A person who fraudulently or negligently makes a false statement or representation is liable to a penalty not exceeding £3,000 if, in consequence of the statement or representation—

(a)that person or any other person obtains relief from, or repayment of, tax chargeable [F22under this Part or under Part 9 of ITEPA 2003 (pension income) on pension income to which—

(i)any provision of Chapter 15A of that Part of that Act (lump sums under registered pension schemes) applies, or

(ii)section 579A of that Act (pension income under registered pension schemes) applies by virtue of any provision of that Chapter, or]

(b)a registered pension scheme makes a payment which is an unauthorised payment.

(2)A person who assists in or induces the preparation of any document which the person knows—

(a)is [F23inaccurate], and

(b)will, or is likely to, cause a registered pension scheme to make an unauthorised payment,

is liable to a penalty not exceeding £3,000.

265Winding-up to facilitate payment of lump sumsU.K.

(1)This section applies where the winding-up of a registered pension scheme has begun and the Inland Revenue considers the pension scheme is being wound up wholly or mainly for the purpose specified in subsection (2).

(2)That purpose is facilitating the payment of winding-up lump sums F24... under the pension scheme.

(3)The scheme administrator is liable to a penalty not exceeding the relevant amount.

(4)The relevant amount is £3,000 in respect of—

(a)each member to whom a winding-up lump sum is paid under the pension scheme, F25...

F25(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

266Transfers to insured schemesU.K.

(1)This section applies where sums held for the purposes of, or representing accrued rights under, a registered pension scheme (“the transferor scheme”) are transferred so as to become held for the purposes of, or to represent rights under, a registered pension scheme that is an insured scheme (“the transferee scheme”).

(2)The scheme administrator of the transferor scheme is liable to a penalty not exceeding £3,000 unless the sums are transferred either to the scheme administrator of the transferee scheme or to a relevant insurance company.

(3)In this section—

• “insured scheme” means a pension scheme all the income and other assets of which are invested in policies of insurance, and

• “relevant insurance company” means an insurance company that issued any of the policies of insurance.