Part 9Pension income
Chapter 8Approved personal pension schemes
Unauthorised personal pension payments
601Unauthorised personal pension payments
1
This section applies to any unauthorised personal pension payment.
2
In this section “personal pension payment” means a payment which—
a
is made out of funds which are or have been held for the purposes of a personal pension scheme (“the paying scheme”), and
b
is made to or for the benefit of an individual who has made personal pension arrangements in accordance with the paying scheme (“the individual’s arrangements”).
3
For the purposes of this section a personal pension payment is unauthorised if any of conditions A, B and C are met.
4
Condition A is that—
a
the paying scheme and the individual’s arrangements are both approved at the time the payment is made, but
b
the payment is not expressly authorised by the rules of the paying scheme.
5
Condition B is that—
a
the paying scheme is not approved at the time the payment is made, and
b
at the time the scheme was last approved, the payment would not have been expressly authorised under the scheme’s rules.
6
Condition C is that—
a
the individual’s arrangements are not approved at the time the payment is made, and
b
at the time the arrangements were last approved, the payment would not have been expressly authorised under the arrangements.
7
In this section “payment” includes—
a
a transfer of assets, and
b
any other transfer of money’s worth.