A scheme administration member payment is not subject to any specific charge under the pensions tax legislation. It is subject to tax under the normal income tax rules. So, for example if a payment of interest is made in addition to a short service refund lump sum it is taxable on the member under section 369 Income Tax (Trading and Other Income) Act 2005 (formerly Case III Schedule D) as this is the normal income tax charging provision for interest payments.
| Glossary ( RPSM20000000) |
