Modifications etc. (not altering text)
C1Pt. 4 modified (N.I.) (1.4.2006) by The Firemens Pension Scheme Order (Northern Ireland) 2006 (S.R. 2006/210), arts. 1(2), 103
C2Pt. 4 modified (6.4.2006) by The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), regs. 1, 9, 10
C3Pt. 4 modified (6.4.2006) by The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), regs. 1, 12
C4Pt. 4 modified (6.4.2006) by The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), regs. 1, 13(5)
C5Pt. 4 modified (6.4.2006) by The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), regs. 1, 26
C6Pt. 4 modified (31.12.2007) by Police and Justice Act 2006 (c. 48), s. 53(1), Sch. 3 para. 7; S.I. 2007/3203, art. 3(b)
C7Pt. 4 modified (1.7.2008) (N.I.) (with effect in accordance with reg. 1 of the amending Rule) by The Health and Social Care (Pension Scheme) Regulations (Northern Ireland) 2008 (S.R. 2008/256), regs. 1, 124(1) (with regs. 134, 258)
C8Pt. 4 modified by The Taxation of Pension Schemes (Transitional Provisions) Order 2006 (S.I. 2006/572), reg. 5A (as inserted (6.4.2006) by S.I. 2008/2990, arts. 1(1), 3)
C9Pt. 4 applied (21.7.2009) by Finance Act 2009 (c. 10), Sch. 35 para. 18
C10Pt. 4 modified (19.7.2011) by Finance Act 2011 (c. 11), Sch. 18 para. 14(3)
C11Pt. 4 applied (with modifications) (with application in accordance with Sch. 22 para. 1 of the amending Act) by Finance Act 2013 (c. 29), Sch. 22 para. 1(2)
C12Pt. 4 modified (17.7.2014) by Finance Act 2014 (c. 26), Sch. 6 para. 1(2)(3)
C13Pt. 4: power to amend conferred (17.12.2014) by Taxation of Pensions Act 2014 (c. 30), s. 4(3)
C14Pt. 4 modified (15.9.2016) by Finance Act 2016 (c. 24), Sch. 4 para. 1
C15Pt. 4 modified (15.9.2016) by Finance Act 2016 (c. 24), Sch. 4 para. 9(2)
(1)The only payments which a registered pension scheme is authorised to make to or in respect of a [F1person who is or has been a] member of the pension scheme are those specified in section 164.
(2)In this Part “unauthorised member payment” means—
(a)a payment by a registered pension scheme to or in respect of a [F2person who is or has been a] member of the pension scheme which is not authorised by section 164, and
(b)anything which is to be treated as an unauthorised payment to or in respect of a [F3person who is or has been a] member of the pension scheme under [F4this Part].
(3)The only payments which a registered pension scheme that is an occupational pension scheme is authorised to make to or in respect of a [F5person who is or has been a] sponsoring employer are those specified in section 175.
(4)In this Part “unauthorised employer payment” means—
(a)a payment by a registered pension scheme that is an occupational pension scheme, to or in respect of a [F6person who is or has been a] sponsoring employer, which is not authorised by section 175, and
(b)anything which is to be treated as an unauthorised payment to a [F7person who is or has been a] sponsoring employer under section 181.
[F8(4A)If an unauthorised member payment or unauthorised employer payment made to or in respect of a person would have been greater but for a reduction made in respect of the whole, or any proportion, of the amount which the scheme administrator considers may be the amount of the liability to the scheme sanction charge in respect of it, it is to be regarded for the purposes of this Part as increased by the amount of the reduction.
(4B)But if the amount, or that proportion of the amount, of that liability is in fact less than the amount of the reduction, a subsequent payment of an amount not exceeding the difference between that amount and the amount of the reduction made—
(a)to or in respect of the same person, and
(b)before the end of the period of two years beginning with the date on which the unauthorised member payment or unauthorised employer payment was made,
is not to be regarded for the purposes of this Part as an unauthorised member payment or unauthorised employer payment.]
(5)In this Part “unauthorised payment” means—
(a)an unauthorised member payment, or
(b)an unauthorised employer payment.
(6)As well as section 157 (de-registration), the following provisions—
(a)section 208 (unauthorised payments charge),
(b)section 209 (unauthorised payments surcharge),
(c)section 239 (scheme sanction charge), and
(d)section 242 (de-registration charge),
specify consequences of making unauthorised payments.
(7)Sections 182 to 185 contain provision about amounts that a registered pension scheme is not authorised to borrow.
[F9(7A)Sections 185A to 185I contain provision about the receipt of income and gains from taxable property.]
(8)As well as section 157, sections 239 and 242 specify consequences of unauthorised borrowing [F10and the receipt of income and gains from taxable property].
(9)Schedule 36 contains (in Parts 3 and 4) transitional provision about unauthorised payments.
Textual Amendments
F1Words in s. 160(1) inserted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 3(2)
F2Words in s. 160(2)(a) inserted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 3(3)(a)
F3Words in s. 160(2)(b) inserted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 3(3)(a)
F4Words in s. 160(2)(b) substituted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 3(3)(b)
F5Words in s. 160(3) inserted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 3(4)
F6Words in s. 160(4)(a) inserted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 3(4)
F7Words in s. 160(4)(b) inserted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 3(4)
F8S. 160(4A)(4B) inserted (19.7.2007) (with effect in accordance with Sch. 20 para. 24(2) of the amending Act) by Finance Act 2007 (c. 11), Sch. 20 para. 5
F9S. 160(7A) inserted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 158(2), Sch. 21 para. 3(2)
F10Words in s. 160(8) inserted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 158(2), Sch. 21 para. 3(3)
Commencement Information
I1Ss. 160-274, 281, Schs. 30-35 in force at 6.4.2006 but any power to make an order or regulations under those provisions may be exercised at any time after Royal Assent, see s. 284
(1)This section applies for the interpretation of this Chapter.
(2)“Payment” includes a transfer of assets and any other transfer of money’s worth.
(3)Subsection (4) applies to a payment made or benefit provided under or in connection with an investment (including an insurance contract or annuity) acquired using sums or assets held for the purposes of a registered pension scheme.
(4)The payment or benefit is to be treated as made or provided from sums or assets held for the purposes of the pension scheme, even if the pension scheme has been wound up since the investment was acquired.
(5)A payment made by a registered pension scheme to [F11or in respect of] a person who—
(a)is connected with a [F12person who is or has been a] member or sponsoring employer (or was connected with [F13such a person at the date of the person's] death), and
(b)is not a [F12person who is or has been a] member or sponsoring employer,
is to be treated as made in respect of the [F12person who is or has been a] member or sponsoring employer.
(6)Any asset held by a person connected with a [F14person who is or has been a] member or sponsoring employer (or who was connected with [F15such a person at the date of the person's] death) is to be treated as held for the benefit of the [F14person who is or has been a] member or sponsoring employer.
(7)Any increase in the value of an asset held by, or reduction in the liability of, a person connected with a [F16person who is or has been a] member or sponsoring employer (or who was connected with [F17such a person at the date of the person's] death) is to be treated as an increase or reduction for the benefit of the [F16person who is or has been a] member or sponsoring employer.
[F18(8)For the purposes of this section whether a person is connected with another person is determined in accordance with section 993 of ITA 2007.]
Textual Amendments
F11Words in s. 161(5) inserted (6.4.2006) by Finance Act 2005 (c. 7), Sch. 10 paras. 5, 64(1)
F12Words in s. 161(5) inserted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 4(2)(a)
F13Words in s. 161(5) substituted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 4(2)(b)
F14Words in s. 161(6) inserted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 4(3)(a)
F15Words in s. 161(6) substituted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 4(3)(b)
F16Words in s. 161(7) inserted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 4(3)(a)
F17Words in s. 161(7) substituted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 4(3)(b)
F18S. 161(8) substituted (with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 467 (with Sch. 2)
Modifications etc. (not altering text)
C16S. 161 modified (6.4.2006) by The Taxation of Pension Schemes (Transitional Provisions) Order 2006 (S.I. 2006/572), arts. 1(1), 2(1)-(3)
C17S. 161(4) modified (6.4.2006) by The Taxation of Pension Schemes (Transitional Provisions) Order 2006 (S.I. 2006/572), arts. 1(1), 2(4)(5)
Commencement Information
I2Ss. 160-274, 281, Schs. 30-35 in force at 6.4.2006 but any power to make an order or regulations under those provisions may be exercised at any time after Royal Assent, see s. 284
(1)This section applies for the interpretation of this Chapter.
(2)“Loan” does not include the purchase of or subscription to debentures, debenture stock, loan stock, bonds, certificates of deposit or other instruments creating or acknowledging indebtedness which are—
(a)listed or dealt in on a recognised stock exchange (within the meaning of [F19section 1005 of ITA 2007]), or
(b)offered to the public.
(3)A guarantee of a loan made to or in respect of a [F20person who is or has been a] member or sponsoring employer of a registered pension scheme [F21, or to or in respect of a person who is connected with a [F20person who is or has been a] member or sponsoring employer of a registered pension scheme but is not [F22such a person],] is to be treated as a loan to or in respect of the [F20person who is or has been a] member or sponsoring employer of an amount equal to the amount guaranteed.
(4)If a [F23person who is or has been a] member or sponsoring employer of a registered pension scheme [F24or a person who is connected with a [F23person who is or has been a] member or sponsoring employer of a registered pension scheme but is not [F25such a person]]—
(a)is liable to pay a debt, the right to payment of which constitutes an asset held for the purposes of the pension scheme, but
(b)is not required to pay it by the relevant date,
the debt is to be treated as a loan made by the pension scheme to the [F23person who is or has been a] member or sponsoring employer on that date.
(5)The relevant date is the date by which a person at arm’s length from the pension scheme might be expected to be required to pay the debt.
[F26(6)For the purposes of this section whether a person is connected with another person is determined in accordance with section 993 of ITA 2007.]
Textual Amendments
F19Words in s. 162(2)(a) substituted (with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 468(2) (with Sch. 2)
F20Words in s. 162(3) inserted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 5(a)
F21Words in s. 162(3) inserted (6.4.2006) by Finance Act 2005 (c. 7), Sch. 10 paras. 6(2), 64(1)
F22Words in s. 162(3) substituted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 5(b)
F23Words in s. 162(4) inserted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 5(a)
F24Words in s. 162(4) inserted (6.4.2006) by Finance Act 2005 (c. 7), Sch. 10 paras. 6(3), 64(1)
F25Words in s. 162(4) substituted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 5(b)
F26S. 162(6) substituted (with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 468(3) (with Sch. 2)
Commencement Information
I3Ss. 160-274, 281, Schs. 30-35 in force at 6.4.2006 but any power to make an order or regulations under those provisions may be exercised at any time after Royal Assent, see s. 284
(1)This section applies for the interpretation of this Chapter.
(2)Borrowing is borrowing by a registered pension scheme if the amount borrowed is to be repaid from sums or assets held for the purposes of the pension scheme.
(3)A liability is a liability of a registered pension scheme if the liability is to be met from sums or assets held for the purposes of the pension scheme.
(4)Borrowing by a registered pension scheme is in respect of an arrangement if it is properly attributable to the arrangement in accordance with the provisions of the pension scheme and any just and reasonable apportionment.
Modifications etc. (not altering text)
C18S. 163(2) applied (retrospective to 6.4.2011) by Finance Act 2011 (c. 11), s. 68(5)(6)
Commencement Information
I4Ss. 160-274, 281, Schs. 30-35 in force at 6.4.2006 but any power to make an order or regulations under those provisions may be exercised at any time after Royal Assent, see s. 284