Part 4Pension schemes etc
Chapter 7Compliance
Penalties
265Winding-up to facilitate payment of lump sums
1
This section applies where the winding-up of a registered pension scheme has begun and the Inland Revenue considers the pension scheme is being wound up wholly or mainly for the purpose specified in subsection (2).
2
That purpose is facilitating the payment of winding-up lump sums or winding-up lump sum death benefits (or both) under the pension scheme.
3
The scheme administrator is liable to a penalty not exceeding the relevant amount.
4
The relevant amount is £3,000 in respect of—
a
each member to whom a winding-up lump sum is paid under the pension scheme, and
b
each member in respect of whom a winding-up lump sum death benefit is paid under the pension scheme.