| [s210] |
A payment to or in respect of a member is a surchargeable
unauthorised member payment if it is an
unauthorised member payment that, together with
any other unauthorised member payments made by the same registered
pension scheme to or in respect of that member, before the end of a
12 month reference period equals or exceeds the surcharge
threshold. A reference period begins on a certain date called the
reference date.
Where the surcharge threshold is reached in respect of a
particular member, a surcharge period is established and all of the
unauthorised payments made to or in respect of that member in the
surcharge period are surchargeable unauthorised member
payments.
A surcharge period starts with the reference date and, where the
surcharge threshold is reached before the end of a period of 12
months beginning from that reference date, ends on the day on which
the surcharge threshold is reached.
RPSM04104640 gives details of what
the surcharge threshold is.
So if in any 12 month period the total unauthorised member
payments made by a particular registered pension scheme to or in
respect of a member are less than the surcharge threshold the
unauthorised payments surcharge will not apply to
those unauthorised payments.
The reference date is the date of payment of the first
unauthorised member payment made to or in respect of the member
concerned.
Subsequent reference dates will occur on the payment of an
unauthorised member payment in respect of the same member after the
end of a reference period.
A reference period starts with the reference date and ends on the earlier of
So the first reference date in respect of a member will be the
date of payment of the first unauthorised member payment to or in
respect of the member by the registered pension scheme. The first
reference period for that member will run from the first reference
date until the surcharge threshold is reached or until 12 months
later if earlier.
The second reference date for that same member will be the
date of first payment of an unauthorised member payment to or in
respect of that member from that registered pension scheme after
the first reference period. The second reference period will run
from the second reference date until the earlier of 12 months later
or the reaching of the surcharge threshold.
The method of calculation of surcharge periods described
above for a member of a registered pension scheme applies equally
to the payment of unauthorised member payments to or in respect of
a former member.
The method of calculation also applies to unauthorised member
payments made to a person who was a member in respect of one or
more unauthorised payments and a former member in respect of other
such payments. For example, a reference period starts when a
registered pension scheme makes an unauthorised member payment to a
member (payment 1). Payment 1 does not reach the surcharge
threshold. Six months later, that person leaves scheme membership
and immediately afterwards the scheme pays another unauthorised
member payment to that, now, former member (payment 2). Payment 1
is considered with payment 2 to determine whether or not the
surcharge threshold is now reached.
RPSM04104650 gives an example of
surchargeable unauthorised member payments.
| Glossary ( RPSM20000000) |
