RPSM04301020 - Scheme Administrator Pages: Taxation: Tax and penalties payable by the administrator: Tax charges on the scheme administrator under Part 4 of Finance Act 2004

What are the tax charges on the scheme administrator under Part 4 of Finance Act 2004?

These are the sections of Part 4 of Finance Act 2004 under which the scheme administrator of a registered pension scheme may become liable to income tax:

• Section 205: short service refund lump sum
• Section 205A: serious ill-health lump sum charge
• Section 206: special lump sum death benefits charge
• Section 207: authorised surplus payments charge
• Section 217: lifetime allowance charge (joint and several liability with the member)
• Section 239: scheme sanction charge
• Section 242: de-registration charge.

Where a scheme administrator is liable for any of these tax charges, except the scheme sanction charge, the administrator must account for the liability by making a return called the accounting for tax (AFT) return - see RPSM12301300.

The deadline for paying the tax shown due shown on the AFT return is the same as the deadline for making the return. The tax liability is payable without the making of an assessment by HMRC.

Where a scheme administrator is liable for a scheme sanction charge, HMRC will issue an assessment to the scheme administrator in respect of that liability.