IntroductoryU.K.
160Payments by registered pension schemesU.K.
(1)The only payments which a registered pension scheme is authorised to make to or in respect of a [person who is or has been a] member of the pension scheme are those specified in section 164.
(2)In this Part “unauthorised member payment” means—
(a)a payment by a registered pension scheme to or in respect of a [person who is or has been a] member of the pension scheme which is not authorised by section 164, and
(b)anything which is to be treated as an unauthorised payment to or in respect of a [person who is or has been a] member of the pension scheme under [this Part].
(3)The only payments which a registered pension scheme that is an occupational pension scheme is authorised to make to or in respect of a [person who is or has been a] sponsoring employer are those specified in section 175.
(4)In this Part “unauthorised employer payment” means—
(a)a payment by a registered pension scheme that is an occupational pension scheme, to or in respect of a [person who is or has been a] sponsoring employer, which is not authorised by section 175, and
(b)anything which is to be treated as an unauthorised payment to a [person who is or has been a] sponsoring employer under section 181.
[(4A)If an unauthorised member payment or unauthorised employer payment made to or in respect of a person would have been greater but for a reduction made in respect of the whole, or any proportion, of the amount which the scheme administrator considers may be the amount of the liability to the scheme sanction charge in respect of it, it is to be regarded for the purposes of this Part as increased by the amount of the reduction.
(4B)But if the amount, or that proportion of the amount, of that liability is in fact less than the amount of the reduction, a subsequent payment of an amount not exceeding the difference between that amount and the amount of the reduction made—
(a)to or in respect of the same person, and
(b)before the end of the period of two years beginning with the date on which the unauthorised member payment or unauthorised employer payment was made,
is not to be regarded for the purposes of this Part as an unauthorised member payment or unauthorised employer payment.]
(5)In this Part “unauthorised payment” means—
(a)an unauthorised member payment, or
(b)an unauthorised employer payment.
(6)As well as section 157 (de-registration), the following provisions—
(a)section 208 (unauthorised payments charge),
(b)section 209 (unauthorised payments surcharge),
(c)section 239 (scheme sanction charge), and
(d)section 242 (de-registration charge),
specify consequences of making unauthorised payments.
(7)Sections 182 to 185 contain provision about amounts that a registered pension scheme is not authorised to borrow.
[(7A)Sections 185A to 185I contain provision about the receipt of income and gains from taxable property.]
(8)As well as section 157, sections 239 and 242 specify consequences of unauthorised borrowing [and the receipt of income and gains from taxable property].
(9)Schedule 36 contains (in Parts 3 and 4) transitional provision about unauthorised payments.
Textual Amendments
Commencement Information
161Meaning of “payment” etcU.K.
(1)This section applies for the interpretation of this Chapter.
(2)“Payment” includes a transfer of assets and any other transfer of money’s worth.
(3)Subsection (4) applies to a payment made or benefit provided under or in connection with an investment (including an insurance contract or annuity) acquired using sums or assets held for the purposes of a registered pension scheme.
(4)The payment or benefit is to be treated as made or provided from sums or assets held for the purposes of the pension scheme, even if the pension scheme has been wound up since the investment was acquired.
(5)A payment made by a registered pension scheme to [or in respect of] a person who—
(a)is connected with a [person who is or has been a] member or sponsoring employer (or was connected with [such a person at the date of the person's] death), and
(b)is not a [person who is or has been a] member or sponsoring employer,
is to be treated as made in respect of the [person who is or has been a] member or sponsoring employer.
(6)Any asset held by a person connected with a [person who is or has been a] member or sponsoring employer (or who was connected with [such a person at the date of the person's] death) is to be treated as held for the benefit of the [person who is or has been a] member or sponsoring employer.
(7)Any increase in the value of an asset held by, or reduction in the liability of, a person connected with a [person who is or has been a] member or sponsoring employer (or who was connected with [such a person at the date of the person's] death) is to be treated as an increase or reduction for the benefit of the [person who is or has been a] member or sponsoring employer.
[(8)For the purposes of this section whether a person is connected with another person is determined in accordance with section 993 of ITA 2007.]
Textual Amendments
Modifications etc. (not altering text)
Commencement Information
162Meaning of “loan”U.K.
(1)This section applies for the interpretation of this Chapter.
(2)“Loan” does not include the purchase of or subscription to debentures, debenture stock, loan stock, bonds, certificates of deposit or other instruments creating or acknowledging indebtedness which are—
(a)listed or dealt in on a recognised stock exchange (within the meaning of [section 1005 of ITA 2007]), or
(b)offered to the public.
(3)A guarantee of a loan made to or in respect of a [person who is or has been a] member or sponsoring employer of a registered pension scheme [, or to or in respect of a person who is connected with a [person who is or has been a] member or sponsoring employer of a registered pension scheme but is not [such a person],] is to be treated as a loan to or in respect of the [person who is or has been a] member or sponsoring employer of an amount equal to the amount guaranteed.
(4)If a [person who is or has been a] member or sponsoring employer of a registered pension scheme [or a person who is connected with a [person who is or has been a] member or sponsoring employer of a registered pension scheme but is not [such a person]]—
(a)is liable to pay a debt, the right to payment of which constitutes an asset held for the purposes of the pension scheme, but
(b)is not required to pay it by the relevant date,
the debt is to be treated as a loan made by the pension scheme to the [person who is or has been a] member or sponsoring employer on that date.
(5)The relevant date is the date by which a person at arm’s length from the pension scheme might be expected to be required to pay the debt.
[(6)For the purposes of this section whether a person is connected with another person is determined in accordance with section 993 of ITA 2007.]
Textual Amendments
Commencement Information
163Meaning of “borrowing” etcU.K.
(1)This section applies for the interpretation of this Chapter.
(2)Borrowing is borrowing by a registered pension scheme if the amount borrowed is to be repaid from sums or assets held for the purposes of the pension scheme.
(3)A liability is a liability of a registered pension scheme if the liability is to be met from sums or assets held for the purposes of the pension scheme.
(4)Borrowing by a registered pension scheme is in respect of an arrangement if it is properly attributable to the arrangement in accordance with the provisions of the pension scheme and any just and reasonable apportionment.
Modifications etc. (not altering text)
Commencement Information