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, 12
C3Pt. 4 modified (6.4.2006) by The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), regs. 1, 13(5)
C4Pt. 4 modified (6.4.2006) by The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), regs. 1, 9, 10
C5Pt. 4 modified (6.4.2006) by The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), regs. 1, 26
(1)A charge to income tax, to be known as the unauthorised payments charge, arises where an unauthorised payment is made by a registered pension scheme.
(2)The person liable to the charge—
(a)in the case of an unauthorised member payment [F1made to or in respect of a person before the person's death, is the person,]
(b)in the case of an unauthorised member payment made [F2in respect of a person after the person's] death, is the recipient, and
(c)in the case of an unauthorised employer payment, is the [F3person] to or in respect of whom the payment is made.
(3)If more than one person is liable to the unauthorised payments charge in respect of an unauthorised payment, those persons are jointly and severally liable to the charge in respect of the payment.
(4)A person is liable to the unauthorised payments charge whether or not—
(a)that person,
(b)any other person who is liable to the unauthorised payments charge, and
(c)the scheme administrator,
are resident, ordinarily resident or domiciled in the United Kingdom.
(5)The rate of the charge is 40% in respect of the unauthorised payment.
(6)The Treasury may by order increase or decrease the rate for the time being specified in subsection (5).
(7)An unauthorised payment may also be subject to—
(a)the unauthorised payments surcharge under section 209, and
(b)the scheme sanction charge under section 239.
(8)An unauthorised payment is not to be treated as income for any purpose of the Tax Acts.
Textual Amendments
F1Words in s. 208(2)(a) substituted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 14(a)
F2Words in s. 208(2)(b) substituted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 14(b)
F3Word in s. 208(2)(c) substituted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 14(c)
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