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)
(1)A registered pension scheme is to be treated as having made an unauthorised payment to a [F1person who is or has been a] member of the pension scheme if an asset held for the purposes of the pension scheme is used to provide a benefit (other than a payment) to—
(a)the [F2person], or
(b)a member of the [F3person's] family or household.
(2)If the benefit is received by reason of an employment which is not an excluded employment, subsection (1) does not apply.
(3)If the benefit is received by reason of an excluded employment, subsection (1) only applies if—
(a)it is a benefit to which Chapter 6 or 10 of the benefits code (cars and vans, and benefits not dealt with elsewhere in benefits code) would apply if the employment were not an excluded employment,
(b)the pension scheme is an occupational pension scheme, and
(c)the [F4person], or a member of the [F5person's] family or household, is a director of, and has a material interest in, a sponsoring employer.
(4)A registered pension scheme is to be treated as having made an unauthorised payment in respect of a [F6person who is or has been a] member of the pension scheme if, after the [F7person's] death, an asset held for the purposes of the pension scheme is used to provide a benefit (other than a payment) to a person who, at the date of the [F7person's] death, was a member of the [F7person's] family or household.
(5)The person who receives the benefit is to be treated as having received the unauthorised payment.
(6)If the benefit is received by reason of an employment which is not an excluded employment, subsections (4) and (5) do not apply.
(7)If the benefit is received by reason of an excluded employment, subsections (4) and (5) only apply if—
(a)paragraphs (a) and (b) of subsection (3) apply, and
(b)at the date of the [F8person's] death the [F9person], or a member of the [F8person's] family or household, was a director of, and had a material interest in, a sponsoring employer.
[F10(7A)This section does not apply if—
(a)the pension scheme is an investment-regulated pension scheme, and
(b)the asset consists of taxable property.]
(8)The amount of an unauthorised payment treated as having been made by this section—
(a)in relation to such benefits, and in such circumstances, as may be prescribed by regulations made by the Board of Inland Revenue, is an amount determined in accordance with the regulations, and
(b)otherwise, is the amount which would be the cash equivalent of the benefit under the benefits code if the benefit were received by reason of an employment and the benefits code applied to it.
(9)For the purposes of subsection (8)—
(a)references in the benefits code to the employee are to be treated as references to the [F11person who is or has been a] member, and
(b)references in the benefits code to the employer are to be treated as references to the pension scheme.
(10)In this section—
“the benefits code” has the meaning given by section 63(1) of ITEPA 2003,
“director” has the meaning given by section 67 of that Act,
“excluded employment” has the meaning given by section 63(4) of that Act, and
“material interest” has the meaning given by section 68 of that Act.
(11)Section 721 of ITEPA 2003 applies for the purposes of determining the members of a person’s family or household.
Textual Amendments
F1Words in s. 173(1) inserted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 8(2)(a)
F2Word in s. 173(1) substituted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 8(2)(b)
F3Word in s. 173(1) substituted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 8(2)(c)
F4Word in s. 173(3) substituted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 8(3)(a)
F5Word in s. 173(3) substituted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 8(3)(b)
F6Words in s. 173(4) inserted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 8(4)(a)
F7Word in s. 173(4) substituted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 8(4)(b)
F8Word in s. 173(7)(b) substituted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 8(5)(a)
F9Word in s. 173(7)(b) substituted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 8(5)(b)
F10S. 173(7A) inserted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 158(2), Sch. 21 para. 4
F11Words in s. 173(9)(a) inserted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 8(6)
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