(c) a credit union within the meaning given by section 31(1) of the Credit
Unions Act 1979 or by Article 2(2) of the Credit Unions (Northern
Ireland) Order 1985;

(d) a friendly society within the meaning given by section 116 of the
25Friendly Societies Act 1992.

(5) In sections 39 and 40, and in subsection (4), “building society” means a building
society incorporated (or deemed to be incorporated) under the Building
Societies Act 1986.

42 Power to amend

(1) 30The Treasury may by order amend any of sections 39 to 41 so as—

(a) to alter the categories of financial institution to which those sections
apply;

(b) to alter the categories of account to which the prohibition in section
39(1) applies;

(c) 35to include provision defining a category of account specified in that
section;

(d) to provide for the prohibition in section 39(1) not to apply in the case of
an account to be operated (or an account that is operated) by or for a
person or body of a specified description.

(2) 40An order under subsection (1) may amend a section so that it provides for a
matter to be specified in a further order to be made by the Treasury.

(3) In subsection (1) “account” includes a financial product by means of which a
payment may be made.

Work

43 Appeals against penalty notices

In section 17 of the Immigration, Asylum and Nationality Act 2006 (appeal), for
subsections (4) and (5) substitute—

“(4A) 5An appeal may be brought only if the employer has given a notice of
objection under section 16 and the Secretary of State—

(a) has determined the objection by issuing to the employer the
penalty notice (as a result of increasing the penalty under
section 16(4)(c)),

(b) 10has determined the objection by—

(i) reducing the penalty under section 16(4)(b), or

(ii) taking no action under section 16(4)(d), or

(c) has not informed the employer of a decision before the end of
the period that applies for the purposes of section 16(5)(b).

(4B) 15An appeal must be brought within the period of 28 days beginning with
the relevant date.

(4C) Where the appeal is brought under subsection (4A)(a), the relevant date
is the date specified in the penalty notice issued in accordance with
section 16(5)(c) as the date on which it is given.

(4D) 20Where the appeal is brought under subsection (4A)(b), the relevant date
is the date specified in the notice informing the employer of the
decision for the purposes of section 16(5)(b) as the date on which it is
given.

(4E) Where the appeal is brought under subsection (4A)(c), the relevant date
25is the date on which the period that applies for the purposes of section
16(5)(b) ends.”

44 Recovery of sums payable under penalty notices

In section 18 of the Immigration, Asylum and Nationality Act 2006
(enforcement), for subsections (1) and (2) substitute—

“(1) 30This section applies where a sum is payable to the Secretary of State as
a penalty under section 15.

(1A) In England and Wales the penalty is recoverable as if it were payable
under an order of the county court.

(1B) In Scotland, the penalty may be enforced in the same manner as an
35extract registered decree arbitral bearing a warrant for execution issued
by the sheriff court of any sheriffdom in Scotland.

(1C) In Northern Ireland the penalty is recoverable as if it were payable
under an order of a county court in Northern Ireland.

(1D) Where action is taken under this section for the recovery of a sum
40payable as a penalty under section 15, the penalty is—

(a) in relation to England and Wales, to be treated for the purposes
of section 98 of the Courts Act 2003 (register of judgments and
orders etc) as if it were a judgment entered in the county court;

(b) in relation to Northern Ireland, to be treated for the purposes of
Article 116 of the Judgments Enforcement (Northern Ireland)
Order 1981 (S.I. 1981/226 (N.I. 6)S.I. 1981/226 (N.I. 6)) (register of judgments) as if it
were a judgment in respect of which an application has been
5accepted under Article 22 or 23(1) of that Order.”

Driving licences

45 Grant of driving licences: residence requirement

(1) In section 97 of the Road Traffic Act 1988 (grant of licences), in the opening
words of subsection (1), after “who” insert “meets the relevant residence
10requirement (see section 97A) and”.

(2) After that section insert—

“97A Residence requirement

(1) For the purposes of an application under section 97, a person meets the
relevant residence requirement if, on the date the application is made—

(a) 15in the case of an application that is made by virtue of section
89(1)(ea) (application by holder of Community licence), the
applicant is lawfully resident in the United Kingdom and is also
normally resident in the United Kingdom or has been attending
a course of study in the United Kingdom during the period of
20six months ending on that date;

(b) in the case of an application that is made by virtue of section
89(1)(f) (application by holder of exchangeable licence), the
applicant is normally and lawfully resident in Great Britain but
has not been so resident for more than the prescribed period;

(c) 25in the case of an application that is made by virtue of section
97(2) (application for provisional licence), the applicant is
lawfully resident in Great Britain and the Secretary of State is
satisfied that the applicant will remain so for not less than 185
days; and

(d) 30in any other case, the applicant is normally and lawfully
resident in Great Britain.

(2) For the purposes of subsection (1) a person is not lawfully resident in
Great Britain or the United Kingdom if the person requires leave to
enter or remain in the United Kingdom but does not have it.”

(3) 35In Article 13 of the Road Traffic (Northern Ireland) Order 1981 (S.I. 1981/154S.I. 1981/154
(N.I. 1)) (grant of licences), in the opening words of paragraph (1), after “who”
insert “meets the relevant residence requirement (see Article 13A) and”.

(4) After that Article insert—

“13A Residence requirement

(1) 40For the purposes of an application under Article 13, a person meets the
relevant residence requirement if, on the date the application is made—

(a) in the case of an application that is made by virtue of Article
5(1)(ea) (application by holder of Community licence), the
applicant is lawfully resident in the United Kingdom and is also
45normally resident in the United Kingdom or has been attending

a course of study in the United Kingdom during the period of
six months ending on that date;

(b) in the case of an application that is made by virtue of Article
5(1)(f) (application by holder of exchangeable licence), the
5applicant is normally and lawfully resident in Northern Ireland
but has not been so resident for more than the prescribed
period;

(c) in the case of an application that is made by virtue of Article
13(2) (application for provisional licence), the applicant is
10lawfully resident in Northern Ireland and the Department is
satisfied that the applicant will remain so for not less than 185
days; and

(d) in any other case, the applicant is normally and lawfully
resident in Northern Ireland.

(2) 15For the purposes of paragraph (1) a person is not lawfully resident in
Northern Ireland or the United Kingdom if the person requires leave to
enter or remain in the United Kingdom but does not have it.”

46 Revocation of driving licences on grounds of immigration status

(1) In section 99 of the Road Traffic Act 1988 (duration of licences)—

(a) 20after subsection (3) insert—

“(3ZA) Where it appears to the Secretary of State that a licence holder is
not lawfully resident in the United Kingdom, the Secretary of
State may serve notice in writing on that person revoking the
licence and requiring the person to surrender the licence and its
25counterpart forthwith to the Secretary of State, and it is the duty
of that person to comply with the requirement.

(3ZB) For the purposes of subsection (3ZA) a person is not lawfully
resident in the United Kingdom if the person requires leave to
enter or remain in the United Kingdom but does not have it.”;

(b) 30in subsection (5), after “(3)” insert “, (3ZA)”;

(c) in subsection (7ZZA)—

(i) after “(3)” insert “, (3ZA)”;

(ii) after “subsections and” insert “, except in the case of a licence
and counterpart surrendered in pursuance of subsection
35(3ZA),”.

(2) In section 100 of that Act (appeals)—

(a) in subsection (1)(c), after “99(3)” insert “, (3ZA)”;

(b) at the end insert—

“(4) In any proceedings under this section about the revocation of a
40licence in pursuance of section 99(3ZA) (revocation on grounds
of immigration status), the court or sheriff is not entitled to
entertain any question as to whether—

(a) the appellant should be, or should have been, granted
leave to enter or remain in the United Kingdom, or

(b) 45the appellant has, after the date that the Secretary of
State served notice under section 99(3ZA), been granted
leave to enter or remain in the United Kingdom.”

(3) In Article 15 of the Road Traffic (Northern Ireland) Order 1981 (S.I. 1981/154S.I. 1981/154
(N.I. 1)) (duration of licences)—

(a) after paragraph (5) insert—

“(5ZA) Where it appears to the Department that a licence holder is not
5lawfully resident in the United Kingdom, the Department may
serve notice in writing on that person revoking the licence and
requiring the person to surrender the licence and its counterpart
forthwith to the Department, and it is the duty of that person to
comply with the requirement.

(5ZB) 10For the purposes of paragraph (5ZA) a person is not lawfully
resident in the United Kingdom if the person requires leave to
enter or remain in the United Kingdom but does not have it.”;

(b) in paragraph (7), after “(5)” insert “, (5ZA)”.

(4) In Article 16 of that Order (appeals)—

(a) 15in paragraph (1)(c), after “15(5)” insert “, (5ZA)”;

(b) at the end insert—

“(4) In any proceedings under this Article about the revocation of a
licence in pursuance of Article 15(5ZA) (revocation on grounds
of immigration status), the court is not entitled to entertain any
20question as to whether—

(a) the appellant should be, or should have been, granted
leave to enter or remain in the United Kingdom, or

(b) the appellant has, after the date that the Department
served notice under Article 15(5ZA), been granted leave
25to enter or remain in the United Kingdom.”

Part 4 Marriage and civil partnership

CHAPTER 1 Referral and investigation of proposed marriages and civil partnerships

Investigation

47 30Decision whether to investigate

(1) This section applies if—

(a) a superintendent registrar refers a proposed marriage to the Secretary
of State under section 28H of the Marriage Act 1949, or

(b) a registration authority refers a proposed civil partnership to the
35Secretary of State under section 12A of the Civil Partnership Act 2004.

(2) The Secretary of State must decide whether to investigate whether the
proposed marriage or civil partnership is a sham.

(3) The Secretary of State may not decide to conduct such an investigation unless
conditions A and B are met.

(4) 40Condition A is met if the Secretary of State is satisfied that—

(a) only one of the parties to the proposed marriage or civil partnership is
an exempt person, or

(b) neither of the parties are exempt persons.

(5) Condition B is met if the Secretary of State has reasonable grounds for
5suspecting that the proposed marriage or civil partnership is a sham.

(6) In making the decision whether to investigate, regard must be had to any
guidance published by the Secretary of State for this purpose.

(7) In the case of a proposed marriage, the Secretary of State must give notice of
the decision made under this section to—

(a) 10both of the parties to the proposed marriage, and

(b) the superintendent registrar who referred the proposed marriage to the
Secretary of State.

(8) In the case of a proposed civil partnership, the Secretary of State must give
notice of the decision made under this section to—

(a) 15both of the parties to the proposed civil partnership,

(b) the registration authority who referred the proposed civil partnership
to the Secretary of State, and

(c) if different, the registration authority responsible for issuing the civil
partnership schedule under section 14(1) of the Civil Partnership Act
202004 in relation to the proposed civil partnership.

(9) The Secretary of State must make the decision, and give the notice, required by
this section within the relevant statutory period.

48 Exempt persons

(1) A person who is a party to a proposed marriage or civil partnership is an
25exempt person if the person—

(a) is a relevant national;

(b) has the appropriate immigration status; or

(c) holds a relevant visa in respect of the proposed marriage or civil
partnership.

(2) 30A person has the appropriate immigration status if the person—

(a) has a right of permanent residence in the United Kingdom by virtue of
an enforceable EU right or of any provision made under section 2(2) of
the European Communities Act 1972;

(b) is exempt from immigration control; or

(c) 35is settled in the United Kingdom (within the meaning of the
Immigration Act 1971 — see section 33(2A) of that Act).

(3) The question of whether a person is exempt from immigration control is to be
determined in accordance with regulations made for this purpose by the
Secretary of State.

(4) 40A person holds a relevant visa if the person holds a visa or other authorisation
that is of a kind specified for this purpose in regulations made by the Secretary
of State.

(5) The Secretary of State may not specify a visa or other authorisation under
subsection (4) unless the Secretary of State considers that the purpose of