RPSM02309060 - Scheme administrator pages: Registering a pension scheme with HMRC: de-registration of a pension scheme: What are the consequences of de-registration?

What are the consequences of de-registration?

De-registration tax charge

There is a 40% tax charge on the total of

• the market value of the assets of the scheme, and
• the sums of money held for the purposes of the scheme.

Both these amounts are taken at their value immediately before the scheme was de- registered.

The charge is raised on the person who was the scheme administrator immediately before the scheme was de-registered.

If more than one person is the scheme administrator at that time, they are jointly and severally liable for the tax due.

Subsequent tax treatment

As the scheme is no longer a registered pension scheme, it will not qualify for tax relief as described in this manual.

Unless the scheme is being wound up, it may continue to operate.

If it is an occupational pension scheme, following de-registration it may be treated for tax purposes as an “employer-financed retirement benefit scheme”.

Information about the tax treatment of an employer-financed retirement benefit scheme which is under trust is in the Employment Income Manual at EIM15000.