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 [F1person 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 [F2person 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 [F3person who is or has been a] member of the pension scheme under [F4this 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 [F5person 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 [F6person 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 [F7person who is or has been a] sponsoring employer under section 181.
[F8(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.
[F9(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 [F10and 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
F1Words in s. 160(1) inserted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 3(2)
F2Words in s. 160(2)(a) inserted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 3(3)(a)
F3Words in s. 160(2)(b) inserted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 3(3)(a)
F4Words in s. 160(2)(b) substituted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 3(3)(b)
F5Words in s. 160(3) inserted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 3(4)
F6Words in s. 160(4)(a) inserted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 3(4)
F7Words in s. 160(4)(b) inserted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 3(4)
F8S. 160(4A)(4B) inserted (19.7.2007) (with effect in accordance with Sch. 20 para. 24(2) of the amending Act) by Finance Act 2007 (c. 11), Sch. 20 para. 5
F9S. 160(7A) inserted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 158(2), Sch. 21 para. 3(2)
F10Words in s. 160(8) inserted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 158(2), Sch. 21 para. 3(3)
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