Part 6 – Leasehold and estate management: Redress schemes Section 106: Financial penalties: maximum amounts
Section 106(1) provides for the maximum amount of financial penalty imposed under Section 105 be determined by the enforcement authority imposing it. The maximum penalty that may be imposed must not be more than £30,000 if Case A, B or C applies; otherwise, the maximum penalty that may be imposed must not be more than £5,000.
	Subsections (2)-(4) make clear the circumstances in which a person who has breached the regulations multiple times, may have a penalty imposed by an enforcement authority under Subsection(1)(a).
	Subsection (2) sets out that Case A applies if a relevant penalty has been imposed on the person, and the final notice imposing the penalty has not been withdrawn; and the conduct for which the penalty was imposed continues after the period of 28 days. This period begins with the day after the day on which the penalty was imposed; or if the final notice was appealed within that period, the day after the day on which the appeal is finally determined, withdrawn, or abandoned.
	Subsection (3) sets out that Case B applies if a relevant penalty has been imposed on the person for breach of the regulations under Section 100(1), and the final notice imposing the penalty has not been withdrawn; and the person engages in conduct which constitutes a different breach of the regulations within a period of five years beginning with the day on which the penalty was imposed.
	Subsection (4) sets out that Case C applies if a relevant penalty has been imposed on the person for conduct where Case A, B, or C applies, and the final notice to impose the penalty has not been withdrawn; and the person breaches regulations under Section 100(1) within a period of five years beginning with the day the penalty was imposed.
	Subsection (5) defines "relevant penalty" for the purposes of this Section as a financial penalty imposed under Section 105 where the period for bringing an appeal against the penalty under paragraph 5 of Schedule 12 has expired without an appeal being brought; an appeal against the financial penalty under that paragraph has been withdrawn or abandoned; or the final notice imposing the penalty has been confirmed or varied on appeal. Terms and processes used in Subsection (5) are defined in Schedule 12.
	Subsection (6) provides for the Secretary of State to change the amounts specified in Subsection (1) by regulations to reflect changes in the value of money.
	Subsection (7) provides that a statutory instrument containing regulations under this Section is subject to the negative procedure.