It does happen but not usually on the first pull. First is usually a notice to correct it and then if you get stopped again it will be a fine. Not sure how many ignores it will take to have it removed but you'd think with ANPR it would be an easy nick for dodgy spacing.
First stop £100 fine for misrepresenting a number plate, report to DVLA who put it on ANPR. £100 fine next time, three strikes and your out. DVLA will withdraw the plate and apparently issue a Q plate. So beware.