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Leasehold and Freehold Reform Act 2024

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This is the original version (as it was originally enacted).

106Financial penalties: maximum amounts

This section has no associated Explanatory Notes

(1)The amount of a financial penalty imposed on a person under section 105 is to be determined by the enforcement authority imposing it, but—

(a)if Case A, B or C applies, the penalty must not be more than £30,000;

(b)otherwise, the penalty must not be more than £5,000.

(2)Case A applies if—

(a)a relevant penalty has been imposed on the person and the final notice imposing the penalty has not been withdrawn, and

(b)the conduct for which the penalty was imposed continues after the end of the period of 28 days beginning with—

(i)the day after the day on which the penalty was imposed on the person, or

(ii)if the person appeals against the final notice in respect of the penalty within that period, the day after the day on which the appeal is finally determined, withdrawn or abandoned.

(3)Case B applies if—

(a)a relevant penalty has been imposed on the person for a breach of regulations under section 100(1) and the final notice imposing the penalty has not been withdrawn, and

(b)the person engages in conduct which constitutes a different breach of such regulations within the period of five years beginning with the day on which the penalty was imposed.

(4)Case C applies if—

(a)a relevant penalty has been imposed on the person for conduct in respect of which Case A, B or C applies and the final notice imposing the penalty has not been withdrawn, and

(b)the person breaches regulations under section 100(1) within the period of five years beginning with the day on which the penalty was imposed.

(5)For the purposes of this section, “relevant penalty” means a financial penalty imposed under section 105 where—

(a)the period for bringing an appeal against the penalty under paragraph 5 of Schedule 12 has expired without an appeal being brought,

(b)an appeal against the financial penalty under that paragraph has been withdrawn or abandoned, or

(c)the final notice imposing the penalty has been confirmed or varied on appeal.

(6)The Secretary of State may by regulations amend the amounts specified in subsection (1) to reflect changes in the value of money.

(7)A statutory instrument containing regulations under this section is subject to the negative procedure.

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