26Penalty for contravention of relevant ruleU.K.
(1)If, in the case of any relevant tax or duty, a person of a prescribed description engages in any conduct by which he contravenes—
(a)a prescribed relevant rule, or
(b)a relevant rule of a prescribed description,
he is liable to a penalty under this section of a prescribed amount.
(2)Subsection (1) is subject to the following provisions of this Part.
(3)The power conferred by subsection (1) to prescribe a description of person includes power to prescribe any person (without further qualification) as such a description.
(4)Different penalties may be prescribed under subsection (1) for different cases or different circumstances.
(5)Any amount prescribed under subsection (1) as the amount of a penalty must not be more than £2,500.
[F1(5A)Where the conduct constituting a contravention of a relevant rule is a contravention of a condition imposed under regulations under section 20(1A), [F220B(2),] 22(1A) or 25(1A) of the Customs and Excise Management Act 1979—
(a)the Treasury may by regulations provide that, in prescribed circumstances, there are to be deemed for the purposes of subsection (1) of this section to be further separate contraventions of the rule, and
(b)the provision that may be made by the regulations includes provision replicating or applying, with or without modifications, any provision made by section 20A(1A) or (1B), 22A(1A) or (1B) or 25A(1A) or (1B) of the Customs and Excise Management Act 1979.]
(6)The Treasury may by order amend subsection (5) by substituting a different amount for the amount for the time being specified in that subsection.
(7)A statutory instrument containing an order under subsection (6) may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, the House of Commons.
(8)In this Part “relevant rule”, in relation to any relevant tax or duty, means any duty, obligation, requirement or condition imposed by or under any of the following—
[F3(za)Part 1 and sections 40A and 40B of the Taxation (Cross-border Trade) Act 2018, as they apply in relation to the relevant tax or duty;]
(a)the Customs and Excise Management Act 1979 (c. 2), as it applies in relation to the relevant tax or duty;
(b)any other Act, or any statutory instrument, as it applies in relation to the relevant tax or duty;
F4(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F5(d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F6(e). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(f)any relevant international rules applying in relation to the relevant tax or duty.
(9)In subsection (8)—
F7...
“relevant international rules” means international agreements so far as applying in relation to a relevant tax or duty and having effect as part of the law of any part of the United Kingdom by virtue of—
Textual Amendments
F1S. 26(5A) inserted (13.9.2018 for specified purposes, 31.12.2020 in so far as not already in force) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(1)(a), Sch. 7 para. 150(2) (with savings and transitional provisions in S.I. 2020/1449, reg. 3 and 2020 c. 26, Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(a)
F2Word in s. 26(5A) inserted (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), s. 340(6)
F3S. 26(8)(za) inserted (13.9.2018 for specified purposes, 31.12.2020 in so far as not already in force) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(1)(a), Sch. 7 para. 150(3)(a) (with savings and transitional provisions in S.I. 2020/1449, reg. 3 and 2020 c. 26, Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(a) (as amended by Taxation (Post-transition Period) Act 2020 (c. 26), s. 11(1)(e), Sch. 1 para. 10(4) (with Sch. 2 para. 7(7)-(9); S.I. 2020/1642, reg. 9)
F4S. 26(8)(c) omitted (13.9.2018 for specified purposes, 31.12.2020 in so far as not already in force) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(1)(a), Sch. 7 para. 150(3)(b) (with savings and transitional provisions in S.I. 2020/1449, reg. 3 and 2020 c. 26, Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(a)
F5S. 26(8)(d) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 110 (with savings and transitional provisions in S.I. 2019/105 (as amended by S.I. 2020/1495, regs. 1(2), 21), S.I. 2020/1545, Pt. 4 and 2020 c. 26, Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)
F6S. 26(8)(e) omitted (13.9.2018 for specified purposes, 31.12.2020 in so far as not already in force) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(1)(a), Sch. 7 para. 150(3)(b) (with savings and transitional provisions in S.I. 2020/1449, reg. 3 and 2020 c. 26, Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(a)
F7Words in s. 26(9) omitted (30.3.2018) by virtue of The Finance Act 2003, Part 3 (Amendment) Order 2018 (S.I. 2018/461), arts. 1, 5(c)(i) (with art. 6); words further omitted (13.9.2018 for specified purposes, 31.12.2020 in so far as not already in force) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(1)(a), Sch. 7 para. 150(4)(a) (with savings and transitional provisions in S.I. 2020/1449, reg. 3 and 2020 c. 26, Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(a)
F8Words in s. 26(9) omitted (13.9.2018 for specified purposes, 31.12.2020 in so far as not already in force) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(1)(a), Sch. 7 para. 150(4)(b) (with savings and transitional provisions in S.I. 2020/1449, reg. 3 and 2020 c. 26, Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(a)
Modifications etc. (not altering text)
C1Pt. 3 modified (17.12.2020 for specified purposes, 31.12.2020 in so far as not already in force) by 2018 c. 22, Sch. 7 para. 158(7) (as inserted by Taxation (Post-transition Period) Act 2020 (c. 26), s. 11(1)(e), Sch. 1 para. 10(6) (with Sch. 2 para. 7(7)-(9); S.I. 2020/1642 reg. 9)
C2Pt. 3 continued (31.12.2020) by The Customs (Transitional) (EU Exit) Regulations 2020 (S.I. 2020/1449), regs. 1(2), 3(1)(b); S.I. 2020/1643, reg. 2, Sch.
C3Ss. 26, 27 applied (17.7.2014) by Finance Act 2014 (c. 26), s. 102(2)
Commencement Information
I1S. 26 in force at 27.11.2003 by S.I. 2003/2985, art. 2