Part I Customs and Excise
C1Chapter II Appeals and Penalties
Civil penalties
I111 Breaches of walking possession agreements.
1
This section applies where—
a
F1in accordance with regulations under section 51 of the Finance Act 1997 (enforcement by distress), a person (“the person levying the distress”) is empowered or authorised to distrain any property of another person (“the person in default”) F2who has refused or neglected to pay any amount of relevant duty or any amount recoverable as if it were an amount of relevant duty due from him; and
b
the person levying the distress and the person in default have entered into a walking possession agreement.
2
In this section a “walking possession agreement” means an agreement under which, in consideration of the property distrained upon being allowed to remain in the custody of the person in default and of the delaying of its sale, the person in default—
a
acknowledges that the property specified in the agreement is under distraint and held in walking possession; and
b
undertakes that, except with the consent of the Commissioners and subject to such conditions as they may impose, he will not remove or allow the removal of any of the specified property from the premises named in the agreement.
3
Subject to subsection (4) below, if the person in default is in breach of the undertaking contained in a walking possession agreement, he shall be liable to a penalty equal to one-half of the unpaid duty or penalty which gives rise to the distraint.
4
The person in default shall not be liable to a penalty under subsection (3) above if he satisfies the Commissioners or, on appeal, an appeal tribunal that there is a reasonable excuse for the breach in question.
5
This section does not extend to Scotland.
Pt. 1 Chapter 2 (ss. 7-19) applied (17.3.2000) by S.I. 2000/426, art. 5