Insertion of regulations 9A to 9D
5. After regulation 9 of the 2009 Regulations (procedure after a proposal is made) insert—
“Imposition of a Part 2 penalty
9A.—(1) This regulation applies in relation to a proposal(1) made by a person in relation to a hereditament.
(2) The VO may impose a financial penalty on that person if—
(a)the person provides the VO with information in, or in connection with, the proposal which is false in a material particular; and
(b)the person does so knowingly, recklessly or carelessly.
(3) The amount of penalty payable is—
(a)for a smaller proposer(2), £200; and
(b)for any other person, £500.
(4) If the VO imposes a penalty under this regulation, the VO must serve a notice on the person (“penalty notice”) stating—
(a)that a Part 2 penalty has been imposed;
(b)the date on which the check to which the proposal relates(3) was completed in relation to the hereditament;
(c)the date the proposal was made;
(d)the date the proposal was determined (if it has been determined);
(e)the information which was found to be false;
(f)the date the information was provided;
(g)the date the penalty notice is served;
(h)the amount of the penalty; and
(i)the person’s right to appeal to the VTE under regulation 9C.
(5) In this regulation, “information in connection with the proposal” means the following information provided by a person as part of the check to which the proposal relates—
(a)a confirmation(4);
(b)any information provided by the person under regulation 4C(1)(a) or (b)(5).
Payment of a Part 2 penalty
9B.—(1) Any sum received by the VO by way of a Part 2 penalty must be paid into the Consolidated Fund.
(2) The VO may recover any outstanding Part 2 penalty as a civil debt due to the VO.
(3) A claim to recover a Part 2 penalty may not be made—
(a)until the end of the period for making an appeal under regulation 9C; or
(b)if an appeal is made under regulation 9C, until the appeal is decided.
(4) The VO may remit in full a Part 2 penalty.
(5) If the VO remits a Part 2 penalty, the VO must refund any amount paid in respect of that penalty.
(6) If the VO imposes a Part 2 penalty of £500 on a smaller proposer, the VO must—
(a)refund to the smaller proposer any amount of penalty paid in excess of £200; or
(b)if the penalty has not been paid, reduce the amount payable to £200.
Appeal against imposition or amount of a Part 2 penalty
9C.—(1) This regulation applies if a person has been served a penalty notice under regulation 9A(4).
(2) The person may appeal to the VTE against—
(a)the imposition of the penalty; or
(b)the amount of the penalty if—
(i)the person is a smaller proposer; and
(ii)the VO has imposed a Part 2 penalty of £500 on the person.
(3) An appeal must be made by serving a notice of appeal on the VTE—
(a)using the VTE’s electronic portal; or
(b)in another manner agreed with the VTE.
(4) The person must serve the notice of appeal on the VTE so that it is received within 28 days after the date on which the penalty notice was served on the person.
(5) A notice of appeal must state—
(a)whether the appeal is against—
(i)the imposition of the penalty; or
(ii)the amount of the penalty; and
(b)the date on which the penalty notice was served on the person.
(6) A notice of appeal must be accompanied by—
(a)a copy of the penalty notice; and
(b)if the appeal is against the amount of the penalty—
(i)a statement that the person is a smaller proposer; and
(ii)a copy of the confirmation(6) provided as part of the check to which the proposal relates.
(7) If the person serves the notice of appeal on the VTE later than the time required by paragraph (4) or allowed by an extension of time under regulation 6(3)(a) of the Procedure Regulations, the notice of appeal must include a request for an extension of time and the reason why the notice of appeal was not served in time.
Effect on time frame for determining proposal
9D.—(1) This regulation applies in relation to the determination of a proposal if a Part 2 penalty is imposed before the proposal is determined.
(2) The VO must not determine the proposal until the end of the period for making an appeal under regulation 9C.
(3) If an appeal is made under regulation 9C against the imposition of the penalty, the VO must not determine the proposal until the VTE has decided the appeal.”.
The definition of “proposal” in regulation 2 was amended by S.I. 2017/155.
The definition of “smaller proposer” was inserted in regulation 3 by S.I. 2017/155.
See regulations 6(1) and 6A(2) (respectively substituted and inserted by S.I. 2017/155) for the period within which a person may make a proposal following completion of a check.
The definition of “confirmation” was inserted in regulation 3 by S.I. 2017/155.
Regulation 4C was inserted by S.I. 2017/155.
Under regulation 4C(3) a confirmation must include a statement as to whether or not, on the day the person provides the confirmation, the proposer qualifies as a smaller proposer.