RPSM04104860 - Technical Pages: Taxation:
Unauthorised payments: Scheme sanction charge: Relief from
liability
Relief from liability to the scheme sanction charge
A
scheme administrator may claim relief from part of
the scheme sanction charge where
- they became liable due to payment of an
unauthorised member payment and
- either
- property or money is transferred to a registered
pension scheme, or
- a sum is paid to a registered pension scheme,
and
- that transfer or payment was made to the
registered pension scheme in accordance with either
- a court order pursuant to section 19(4) Pensions
Act 2004 or Article 15(4) Pensions (Northern Ireland) Order 2005,
or
- an order by the Pensions Regulator under section
21(2)(a) Pensions Act 2004 or Article 17(2)(a) Pensions (Northern
Ireland) Order 2005.
The scheme administrator may claim relief from the scheme
sanction charge within 1 year beginning with the day on which the
property or money is transferred or the sum is paid to the scheme.
The amount that can be reclaimed is represented by the
formula
ASO = the amount that is the total of
- the market value of any property
transferred to the scheme,
- the amount of any money transferred to the
scheme, and
- the amount of the sum paid to the
scheme
in accordance with the order under sections 19(4) and 21(2)(a)
Pensions Act 2004 or Article 15(4) and 17(2)(a) ) Pensions
(Northern Ireland) Order 2005.
UMP = the amount of the unauthorised member payment.
If ASO is more than UMP the amount of relief from the scheme
sanction charge that can be claimed is the whole amount of the
scheme sanction charge
