Part 4Pension schemes etc
Chapter 7Compliance
Penalties
261Enhanced F1... allowance regulations: documents and information
(1)
This section applies where an individual fraudulently or negligently—
(a)
(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 F4lump 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 F5or 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 F6lump 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 F7the 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 F8a 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 F9the 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 F10or 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 F11or 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.