Part 9Pension income
Chapter 6Approved retirement benefits schemes
Unauthorised payments
583Unauthorised payments
1
This section applies to a payment if conditions A, B and C are met.
2
But this section does not apply to a payment to which section 623 applies.
3
Condition A is that the payment—
a
is made out of funds which are held for the purposes of an approved retirement benefits scheme (“the paying scheme”), but
b
is not expressly authorised—
i
by the rules of the paying scheme, or
ii
by virtue of paragraph 33 of Schedule 6 to FA 1989.
4
Condition B is that the payment is not made in the course of payment of a pension or annuity.
5
Condition C is that the payment is made to or for the benefit of—
a
an employee, or
b
an ex-spouse of an employee.
6
A payment to which this section applies is not to be charged to tax under—
a
section 598 or 599 of ICTA, or
b
the Regulations mentioned in paragraph 8 of Schedule 3 to FA 1971.
7
In this section “payment” includes—
a
a transfer of assets, and
b
any other transfer of money’s worth.