C1C2C3C4C5C6C7C8C9C10C11C12C13C14C15Part 4Pension schemes etc

Annotations:
Modifications etc. (not altering text)
C7

Pt. 4 modified (1.7.2008) (N.I.) (with effect in accordance with reg. 1 of the amending Rule) by The Health and Social Care (Pension Scheme) Regulations (Northern Ireland) 2008 (S.R. 2008/256), regs. 1, 124(1) (with regs. 134, 258)

C9

Pt. 4 applied (21.7.2009) by Finance Act 2009 (c. 10), Sch. 35 para. 18

C10

Pt. 4 modified (19.7.2011) by Finance Act 2011 (c. 11), Sch. 18 para. 14(3)

C11

Pt. 4 applied (with modifications) (with application in accordance with Sch. 22 para. 1 of the amending Act) by Finance Act 2013 (c. 29), Sch. 22 para. 1(2)

C12

Pt. 4 modified (17.7.2014) by Finance Act 2014 (c. 26), Sch. 6 para. 1(2)(3)

C13

Pt. 4: power to amend conferred (17.12.2014) by Taxation of Pensions Act 2014 (c. 30), s. 4(3)

C14

Pt. 4 modified (15.9.2016) by Finance Act 2016 (c. 24), Sch. 4 para. 1

C15

Pt. 4 modified (15.9.2016) by Finance Act 2016 (c. 24), Sch. 4 para. 9(2)

C10Chapter 3Payments by registered pension schemes

Unauthorised member payments

172CF1Allocation of unallocated employer contributions

1

This section applies if—

a

contributions are paid under a registered pension scheme by an employer otherwise than in respect of any individual,

b

in any tax year any of the contributions become held for the purposes of the provision of benefits to or in respect of a member of the pension scheme under any relevant arrangement or arrangements (“the allocated contributions”),

c

the amount of the allocated contributions exceeds the permitted maximum, and

d

the member and the employer, or the member and any person connected with the employer at any time during the tax year, are connected persons at any time during the tax year.

2

An arrangement is a relevant arrangement if it is—

a

a money purchase arrangement that is not a cash balance arrangement F3or a collective money purchase arrangement, or

b

a hybrid arrangement under which the benefits that may be provided to or in respect of the member are, or include, money purchase benefits F4that are not cash balance benefits or collective money purchase benefits.

3

“The permitted maximum” is—

a

the maximum amount of relief to which the member is entitled under section 188 (relief for contributions) in respect of relievable pension contributions paid during the tax year (see section 190), less

b

the amount of any contributions paid by employers under any registered pension scheme in respect of the member in the tax year.

4

But if the member is a also a member of one or more other registered pension schemes, the permitted maximum in relation to each of the registered pension schemes of which he is a member is—

where—

PM is the amount arrived at under subsection (3), and

N is the number of registered pension schemes of which he is a member.

5

The pension scheme is to be treated as making an unauthorised payment to the member (or to the member's personal representatives).

6

The amount of the unauthorised payment is the amount by which the amount of the allocated contributions exceeds the permitted maximum.

F27

For the purposes of this section whether a person is connected with another person is determined in accordance with section 993 of ITA 2007.