Part 4Pension schemes etc

Chapter 5Registered pension schemes: tax charges

Unauthorised payments charge

209Unauthorised payments surcharge

(1)

A charge to income tax, to be known as the unauthorised payments surcharge, arises where a surchargeable unauthorised payment is made by a registered pension scheme.

(2)

“Surchargeable unauthorised payments” means—

(a)

surchargeable unauthorised member payments (see section 210), and

(b)

surchargeable unauthorised employer payments (see section 213).

(3)

The person liable to the charge—

(a)

in the case of a surchargeable unauthorised member payment F1made to or in respect of a person before the person's death, is the person,

(b)

in the case of a surchargeable unauthorised member payment made F2in respect of a person after the person's death, is the recipient, and

(c)

in the case of a surchargeable unauthorised employer payment, is the F3person to or in respect of whom the payment was made.

(4)

If more than one person is liable to the unauthorised payments surcharge in respect of a surchargeable unauthorised payment, those persons are jointly and severally liable to the surcharge in respect of the payment.

(5)

A person is liable to the unauthorised payments surcharge whether or not—

(a)

that person,

(b)

any other person who is liable to the unauthorised payments surcharge, F4...

(c)

the scheme administrator, F5and

F6(d)

the sub-scheme administrator,

are resident, ordinarily resident or domiciled in the United Kingdom.

(6)

The rate of the charge is 15% in respect of the surchargeable unauthorised payment.

F7(7)

The Treasury may by order amend subsection (6) so as to vary the rate of the unauthorised payments surcharge.

(8)

An order under subsection (7) may make provision for there to be different rates in different circumstances.