RPSM04104770 - Technical Pages: Taxation: Unauthorised payments: Unauthorised payments surcharge: Relief from liability

Relief from liability to the unauthorised payments surcharge

A person liable to the unauthorised payments surcharge, because of payment of an unauthorised member payment, may claim relief from part of the unauthorised payments charge where

• property or money is transferred, or
• a sum is paid

to a registered pension scheme in accordance with

• a court order made under 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 amount of the unauthorised payments charge 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 unauthorised payments charge that can be claimed is the whole amount of the unauthorised payments charge

The claim for relief must be made within one year beginning with the day on which the property or money is transferred or the sum is paid to the scheme.