(1) Section 182 of the Finance Act 1989 (c. 26) (disclosure of information by officials) is amended as follows.
(2) In subsection (1) (offence of disclosure by person holding information in exercise of certain functions)—
(a) after “tax credit functions” insert “, child trust fund functions”, and
(b) after paragraph (aa) insert—
“(ab) to a child trust fund of any identifiable person,”.
(3) After subsection (2ZA) insert—
“(2ZB) In this section “child trust fund functions” means the functions relating to child trust funds—
(a) of the Board and their officers,
(b) of any person carrying out the administrative work of the General Commissioners or the Special Commissioners, or
(c) of any person providing, or employed in the provision of, services to the Board or any person mentioned in paragraph (b) above.”
(4) In subsection (4) (offence of disclosure by staff of auditors or ombudsmen)—
(a) in paragraphs (b) and (c), after “tax credit functions” insert “, child trust fund functions”, and
(b) after sub-paragraph (ia) of paragraph (c) insert—
“(ib) to a child trust fund of any identifiable person,”.
(5) In subsection (5)(b) (exception in case of consent), for “or to a tax credit” substitute “, to a tax credit or to a child trust fund”.
(6) In subsection (10), after the definition of “the Board” insert—
““child trust fund” has the same meaning as in the Child Trust Funds Act 2004,”.
(1) Where a relevant child dies, the Inland Revenue may make a payment to the personal representatives of the child if any one or more of the conditions specified in subsection (3) is satisfied.
(2) “Relevant child” means a child who is or has been an eligible child (or would have been had this Act come into force on the date referred to in section 2(1)).
(3) The conditions are—
(a) that either no payment had been made under section 8 by the Inland Revenue or, if one had, the amount of the payment had not been credited to the child trust fund held by the child,
(b) that section 9 applied to the child (or would have had this Act come into force on the date referred to in section 2(1)) but either no payment had been made under that section by the Inland Revenue or, if one had, the amount of the payment had not been credited to the child trust fund held by the child, and
(c) that the Inland Revenue was required by regulations under section 10 to make a payment in respect of the child but either the payment had not been made or, if it had, the amount of the payment had not been credited to the child trust fund held by the child.
(4) The amount of the payment is to be equal to the amount of the payment or payments which had not been made or credited.
(1) A penalty of £300 may be imposed on any person who fraudulently—
(a) applies to open a child trust fund,
(b) makes a withdrawal from a child trust fund otherwise than as permitted by regulations under section 3(4)(d), or
(c) secures the opening of a child trust fund by the Inland Revenue.
(2) A penalty not exceeding £3,000 may be imposed on—
(a) an account provider who fraudulently or negligently makes an incorrect statement or declaration in connection with a claim under section 8 or 9 or regulations under section 10 or 13, and
(b) any person who fraudulently or negligently provides incorrect information in response to a requirement imposed by or under regulations under section 15.
(3) Penalties may be imposed on—
(a) an account provider who fails to make a claim under section 8 or 9 or regulations under section 10 by the time required by regulations under the section concerned, and
(b) any person who fails to make a document available, or provide information, in accordance with regulations under section 15.
(4) The penalties which may be imposed under subsection (3) are—
(a) a penalty not exceeding £300, and
(b) if the failure continues after a penalty under paragraph (a) is imposed, a further penalty or penalties not exceeding £60 for each day on which the failure continues after the day on which the penalty under that paragraph was imposed (but excluding any day for which a penalty under this paragraph has already been imposed).
(5) No penalty under subsection (3) may be imposed on a person in respect of a failure after the failure has been remedied.
(6) For the purposes of subsection (3) a person is to be taken not to have failed to make a claim, make available a document or provide information which must be made, made available or provided by a particular time—
(a) if the person made it, made it available or provided it within such further time (if any) as the Inland Revenue may have allowed,
(b) if the person had a reasonable excuse for not making it, making it available or providing it by that time, or
(c) if, after having had such an excuse, the person made it, made it available or provided it without unreasonable delay.
(7) A penalty may be imposed on an account provider in respect of—
(a) the provision by the account provider, as a child trust fund, of an account which does not meet the condition in subsection (8),
(b) a failure by the account provider to comply with section 8(2) or 9(3) or with a requirement imposed on the account provider by regulations under section 5(5), 6(3), 7 or 10(3), or
(c) a breach of section 12(1), or regulations under section 12(2), in relation to a child trust fund held with the account provider.
(8) An account meets the condition referred to in subsection (7)(a) if—
(a) it is of one of the descriptions prescribed by regulations under section 3(2),
(b) section 3(4) is complied with in relation to it, and
(c) the requirements imposed by regulations under section 3(5) are satisfied in relation to it.
(9) The penalty which may be imposed under subsection (7) on the account provider is a penalty not exceeding—
(a) £300, or
(b) £1 in respect of each account affected by the matter, or any of the matters, in respect of which the penalty is imposed,
whichever is greater.
(1) It is for the Inland Revenue to impose a penalty under section 20.
(2) If the Inland Revenue decide to impose such a penalty the decision must (subject to the permitted maximum) set it at such amount as, in their opinion, is appropriate.
(3) A decision to impose such a penalty may not be made after the end of the period of six years beginning with the date on which the penalty was incurred or began to be incurred.
(4) The Inland Revenue must give notice of such a decision to the person on whom the penalty is imposed.
(5) The notice must state the date on which it is given and give details of the right to appeal against the decision under section 22.
(6) After the notice has been given, the decision must not be altered except on appeal.
(7) But the Inland Revenue may, in their discretion, mitigate any penalty under section 20.
(8) A penalty under section 20 becomes payable at the end of the period of 30 days beginning with the date on which notice of the decision is given.
(9) On an appeal under section 22 against a decision under this section, the General Commissioners or Special Commissioners may—
(a) if it appears that no penalty has been incurred, set the decision aside,
(b) if the amount set appears to be appropriate, confirm the decision,
(c) if the amount set appears to be excessive, reduce it to such other amount (including nil) as they consider appropriate, or
(d) if the amount set appears to be insufficient, increase it to such amount not exceeding the permitted maximum as they consider appropriate.
(10) An appeal from a decision of the Commissioners under subsection (9) lies, at the instance of the person on whom the penalty was imposed, to—
(a) the High Court, or
(b) in Scotland, the Court of Session as the Court of Exchequer in Scotland,
and on such an appeal the court has a similar jurisdiction to that conferred on the Commissioners by that subsection.
(11) A penalty is to be treated for the purposes of Part 6 of the Taxes Management Act 1970 (c. 9) (collection and recovery) as if it were tax charged in an assessment and due and payable.
(1) A person may appeal against—
(a) a decision by the Inland Revenue not to approve the person as an account provider, or
(b) a decision by the Inland Revenue to withdraw the person’s approval as an account provider.
(2) A person who is a relevant person in relation to a child may appeal against a decision by the Inland Revenue—
(a) not to issue a voucher under section 5 in relation to the child,
(b) not to open a child trust fund for the child under section 6,
(c) not to make a payment under section 8 or 9 in respect of the child, or
(d) not to make a payment under regulations under section 10 in respect of the child.
(3) “Relevant person”, in relation to a child, means—
(a) the person (if any) entitled to child benefit in respect of the child,
(b) anyone who applied to open a child trust fund for the child, and
(c) anyone who has, at any time, given instructions with respect to the management of the child trust fund held by the child.
(4) A person who is required by the Inland Revenue to account for an amount under regulations under section 11 or 13 may appeal against the decision to impose the requirement.
(5) The personal representatives of a child who has died may appeal against a decision by the Inland Revenue not to make a payment to them under section 19.
(6) A person on whom a penalty under section 20 is imposed may appeal against the decision to impose the penalty or its amount.
(1) Notice of an appeal under section 22 against a decision must be given to the Inland Revenue in the manner prescribed by regulations within the period of thirty days after the date on which notice of the decision was given.
(2) Notice of such an appeal must specify the grounds of appeal.
(3) An appeal under section 22 is to the General Commissioners but the appellant may elect (in accordance with section 46(1) of the Taxes Management Act 1970 (c. 9)) to bring the appeal before the Special Commissioners instead.
(4) Subsections (2) to (7) of section 31D of the Taxes Management Act 1970 (which relate to an election to bring proceedings before the Special Commissioners) have effect in relation to an election under subsection (3) (as in relation to an election under subsection (1) of that section).
(5) On the hearing of an appeal under section 22 the Commissioners may allow the appellant to put forward grounds not specified in the notice, and take them into consideration if satisfied that the omission was not wilful or unreasonable.
(6) Part 5 of the Taxes Management Act 1970 (appeals to Commissioners) applies in relation to appeals under section 22 (as in relation to appeals under the Taxes Acts, within the meaning of that Act), but subject to such modifications as are prescribed by regulations.
(7) Any regulations under section 56B of the Taxes Management Act 1970 (c. 9) which are in force immediately before the commencement of subsection (6) apply, subject to any necessary modifications, for the purposes of appeals under section 22 (until amended or revoked).
(1) Until such day as may be appointed by order—
(a) section 21 has effect subject to subsection (2),
(b) section 23 has effect subject to subsection (3), and
(c) section 182(2ZB) of the Finance Act 1989 (c. 26) has effect subject to subsection (4).
(2) The references to—
(a) the General Commissioners or Special Commissioners in subsection (9) of section 21, and
(b) the Commissioners in subsection (10) of that section,
are to the appeal tribunal; and an appeal from a decision of the appeal tribunal under subsection (9) of that section lies to a Social Security Commissioner rather than the High Court or the Court of Session (so that the reference to the court in subsection (10) of that section is to the Social Security Commissioner).
(3) An appeal under section 22 is to an appeal tribunal (rather than to the General Commissioners or Special Commissioners) so that—
(a) subsections (3), (4), (6) and (7) of section 23 do not apply, and
(b) the reference to the Commissioners in subsection (5) of that section is to the appeal tribunal.
(4) The reference to the General Commissioners or the Special Commissioners in section 182(2ZB) of the Finance Act 1989 is to an appeal tribunal.
(5) Regulations may apply any provision contained in—
(a) the Social Security Act 1998 (c. 14) (social security appeals: Great Britain),
(b) the Social Security (Northern Ireland) Order 1998 (S.I. 1998/1506 (N.I. 10)) (social security appeals: Northern Ireland), or
(c) section 54 of the Taxes Management Act 1970 (settling of appeals by agreement),
in relation to appeals which by virtue of this section are to an appeal tribunal, or lie to a Social Security Commissioner, but subject to such modifications as are prescribed by the regulations.
(6) “Appeal tribunal” means an appeal tribunal constituted—
(a) in Great Britain, under Chapter 1 of Part 1 of the Social Security Act 1998, or
(b) in Northern Ireland, under Chapter 1 of Part 2 of the Social Security (Northern Ireland) Order 1998.
(7) “Social Security Commissioner” means—
(a) in Great Britain, the Chief Social Security Commissioner or any other Social Security Commissioner appointed under the Social Security Act 1998 or a tribunal of three or more Commissioners constituted under section 16(7) of that Act, and
(b) in Northern Ireland, the Chief Social Security Commissioner or any other Social Security Commissioner appointed under the Social Security Administration (Northern Ireland) Act 1992 (c. 8) or a tribunal of two or more Commissioners constituted under Article 16(7) of the Social Security (Northern Ireland) Order 1998 (S.I. 1998/1506 (N.I. 10)).
In Schedule 2 to the Northern Ireland Act 1998 (c. 47) (excepted matters), after paragraph 9 insert—
“9A Child Trust Funds.”
(1) Any expenditure incurred by the Inland Revenue under or by virtue of this Act is to be defrayed out of money provided by Parliament.
(2) Any sums received by the Inland Revenue by virtue of this Act are to be paid into the Consolidated Fund.
This Act (apart from sections 25 and 26, this section and sections 28 to 31) comes into force in accordance with provision made by order.
(1) Any power to make regulations or an order under this Act is exercisable by the Treasury.
(2) Any power to make regulations or an order under this Act includes power to make any incidental, supplementary, consequential or transitional provision which appears appropriate for the purposes of, or in connection with, the regulations or order.
(3) Any power to make regulations under this Act may be exercised—
(a) in relation to all cases to which it extends, to all those cases with exceptions prescribed by the regulations or to cases or classes of case so prescribed,
(b) so as to make as respects the cases in relation to which it is exercised the full provision to which it extends or any less provision (whether by way of exception or otherwise),
(c) so as to make the same provision for all cases in relation to which it is exercised or different provision for different cases or classes of case or different provision as respects the same case or class of case for different purposes,
(d) so as to make provision unconditionally or subject to any condition prescribed by the regulations,
(e) so as to provide for a person to exercise a discretion in dealing with any matter.
(4) Any power to make regulations or an order under this Act is exercisable by statutory instrument.
(5) No regulations to which this subsection applies may be made unless a draft of the instrument containing them has been laid before, and approved by a resolution of, each House of Parliament.
(6) Subsection (5) applies to—
(a) regulations under section 2(7) or 10(1) or (2), and
(b) regulations which prescribe an amount under section 8(1) or 9(2), other than the first regulations which do so.
(7) A statutory instrument containing only regulations under section 13 is subject to annulment in pursuance of a resolution of the House of Commons.
(8) Any other statutory instrument containing regulations under this Act is (unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament) subject to annulment in pursuance of a resolution of either House of Parliament.
In this Act—
“account provider” is to be construed in accordance with section 3(1),
“child” means a person under the age of 18,
“child trust fund” has the meaning given by section 1(2),
“eligible child” is to be construed in accordance with section 2,
“the General Commissioners” means the Commissioners for the general purposes of the income tax appointed under section 2 of the Taxes Management Act 1970 (c. 9),
“the Inland Revenue” means the Commissioners of Inland Revenue,
“responsible person” has the meaning given by section 3(8), and
“the Special Commissioners” means the Commissioners for the special purposes of the Income Tax Acts appointed under section 4 of the Taxes Management Act 1970.
This Act extends to Northern Ireland (as well as to England and Wales and Scotland).
This Act may be cited as the Child Trust Funds Act 2004.