Part 4Pension schemes etc
Chapter 3Payments by registered pension schemes
Authorised employer payments
180Scheme administration employer payments
(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.