Child Trust Funds Act 2004

20 Penalties

(1) A penalty of £300 may be imposed on any person who fraudulently—

(a) applies to open a child trust fund,

(b) makes a withdrawal from a child trust fund otherwise than as permitted by regulations under section 3(4)(d), or

(c) secures the opening of a child trust fund by the Inland Revenue.

(2) A penalty not exceeding £3,000 may be imposed on—

(a) an account provider who fraudulently or negligently makes an incorrect statement or declaration in connection with a claim under section 8 or 9 or regulations under section 10 or 13, and

(b) any person who fraudulently or negligently provides incorrect information in response to a requirement imposed by or under regulations under section 15.

(3) Penalties may be imposed on—

(a) an account provider who fails to make a claim under section 8 or 9 or regulations under section 10 by the time required by regulations under the section concerned, and

(b) any person who fails to make a document available, or provide information, in accordance with regulations under section 15.

(4) The penalties which may be imposed under subsection (3) are—

(a) a penalty not exceeding £300, and

(b) if the failure continues after a penalty under paragraph (a) is imposed, a further penalty or penalties not exceeding £60 for each day on which the failure continues after the day on which the penalty under that paragraph was imposed (but excluding any day for which a penalty under this paragraph has already been imposed).

(5) No penalty under subsection (3) may be imposed on a person in respect of a failure after the failure has been remedied.

(6) For the purposes of subsection (3) a person is to be taken not to have failed to make a claim, make available a document or provide information which must be made, made available or provided by a particular time—

(a) if the person made it, made it available or provided it within such further time (if any) as the Inland Revenue may have allowed,

(b) if the person had a reasonable excuse for not making it, making it available or providing it by that time, or

(c) if, after having had such an excuse, the person made it, made it available or provided it without unreasonable delay.

(7) A penalty may be imposed on an account provider in respect of—

(a) the provision by the account provider, as a child trust fund, of an account which does not meet the condition in subsection (8),

(b) a failure by the account provider to comply with section 8(2) or 9(3) or with a requirement imposed on the account provider by regulations under section 5(5), 6(3), 7 or 10(3), or

(c) a breach of section 12(1), or regulations under section 12(2), in relation to a child trust fund held with the account provider.

(8) An account meets the condition referred to in subsection (7)(a) if—

(a) it is of one of the descriptions prescribed by regulations under section 3(2),

(b) section 3(4) is complied with in relation to it, and

(c) the requirements imposed by regulations under section 3(5) are satisfied in relation to it.

(9) The penalty which may be imposed under subsection (7) on the account provider is a penalty not exceeding—

(a) £300, or

(b) £1 in respect of each account affected by the matter, or any of the matters, in respect of which the penalty is imposed,

whichever is greater.