39 Payment of minimum contributions to personal pension schemes.(1)

Subject to the following provisions of this Part, the Inland Revenue shall, except in such circumstances or in respect of such periods as may be prescribed, pay minimum contributions in respect of an employed earner for any period during which the earner—

(a)

is over the age of 16 but has not attained pensionable age;

(b)

is not a married woman or widow who has made an election which is still operative that so much of her liability in respect of primary Class 1 contributions as is attributable to section 8(1)(a) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 shall be a liability to contribute at a reduced rate; and

(c)

is a member of an appropriate personal pension scheme which is for the time being the earner’s chosen scheme.

(2)

Subject to subsection (3), minimum contributions in respect of an earner shall be paid to the earner .

(3)

In such circumstances as may be prescribed minimum contributions shall be paid to a prescribed person.

(4)

Where the condition mentioned in subsection (1)(a) or (c) ceases to be satisfied in the case of an earner in respect of whom the Inland Revenueare required to pay minimum contributions, the duty of the Inland Revenue to pay them shall cease as from a date determined in accordance with regulations made by the Secretary of State.

(5)

If the Inland Revenuepay an amount by way of minimum contributions which they are not required to pay, the Inland Revenue may recover it—

(a)

from the person to whom the Inland Revenue paid it, or

(b)

from any person in respect of whom the Inland Revenue paid it.

(6)

If the Inland Revenuepay in respect of an earner an amount by way of minimum contributions which the Inland Revenueare required to pay, but do not pay it to the trustees or managers of the earner’s chosen scheme, the may recover it from the person to whom the Inland Revenue paid it or from the earner.

(6A)

Where a payment under subsection (1) is due in respect of an earner, HMRC are not required to make the payment if they determine that the cost to them of administering the payment would exceed the amount of the payment.

(7)

In this section “prescribed” means prescribed by regulations made by the Secretary of State.

(8)

In this section “the earner's chosen scheme” means the scheme which was immediately before the first abolition date the earner's chosen scheme in accordance with section 40 (as it had effect prior to that date).