Part 4U.K.Pension schemes etc

Modifications etc. (not altering text)

C7Pt. 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)

C9Pt. 4 applied (21.7.2009) by Finance Act 2009 (c. 10), Sch. 35 para. 18

C10Pt. 4 modified (19.7.2011) by Finance Act 2011 (c. 11), Sch. 18 para. 14(3)

C11Pt. 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)

C12Pt. 4 modified (17.7.2014) by Finance Act 2014 (c. 26), Sch. 6 para. 1(2)(3)

C13Pt. 4: power to amend conferred (17.12.2014) by Taxation of Pensions Act 2014 (c. 30), s. 4(3)

Chapter 3U.K.Payments by registered pension schemes

Authorised employer paymentsU.K.

180Scheme administration employer paymentsU.K.

(1)A “scheme administration employer payment” is a payment made—

(a)by a registered pension scheme that is an occupational pension scheme, and

(b)to or in respect of a [F1person who is or has been a] sponsoring employer,

for the purposes of the administration or management of the pension scheme.

(2)But if a payment falling within subsection (1) exceeds the amount which might be expected to be paid to a person who was at arm’s length, the excess is not a scheme administration employer payment.

(3)Scheme administration employer payments include in particular—

(a)the payment of wages, salaries or fees to persons engaged in administering the pension scheme, and

(b)payments made for the purchase of assets to be held for the purposes of the pension scheme.

(4)A loan to or in respect of a [F2person who is or has been a] sponsoring employer is not a scheme administration employer payment.

(5)Payments made to acquire shares in a sponsoring employer are not scheme administration employer payments if, when the payment is made—

(a)the market value of shares in the sponsoring employer held for the purposes of the pension scheme is equal to or greater than 5% of the aggregate of the amount of the sums, and the market value of the assets, held for the purposes of the pension scheme, or

(b)the total market value of shares in sponsoring employers held for the purposes of the pension scheme is equal to or greater than 20% of the aggregate of the amount of the sums, and the market value of the assets, held for the purposes of the pension scheme.

(6)Regulations made by the Board of Inland Revenue may provide that payments of a description specified in the regulations are, or are not, scheme administration employer payments.

Textual Amendments

F1Words in s. 180(1) inserted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 12

F2Words in s. 180(4) inserted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 12

Modifications etc. (not altering text)

C15S. 180 modified (with effect in accordance with reg. 1(2) of the amending S.I.) by The Finance Act 2004, Section 180(5) (Modification) Regulations 2012 (S.I. 2012/1258), regs. 1, 2

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