RPSM04104620 - Technical Pages: Taxation: Unauthorised payments: Unauthorised payments surcharge: Who is liable?

Who is liable to the unauthorised payment surcharge?

The person liable to the unauthorised payments surcharge will depend on whether the payment is a surchargeable unauthorised member payment or a surchargeable unauthorised employer payment.

Surchargeable unauthorised member payments

The person liable is

• the member, or former member, in respect of whom the payment was made, if the payment was made whilst the member, or former member, was alive, or
• the person who receives the payment - if the payment was made after the death of the member or former member.

Surchargeable unauthorised employer payments

The person liable is the sponsoring employer, or former sponsoring employer, who received the payment, or in respect of whom the payment was made.

If more than one person is liable to a particular unauthorised payments surcharge, those persons are jointly and severally liable to the charge. This means that all parties to the charge are equally liable to the whole charge, and that payment by one will discharge the liability of the other(s), to the extent of the amount paid.

A person remains liable to the unauthorised payments surcharge even if they, or any other person who is also liable to the surcharge, are not resident, ordinarily resident or domiciled in the UK.

A person will also still be liable to the surcharge if the scheme administrator is not resident, ordinarily resident or domiciled in the UK