Subject to Department for Work and Pensions (DWP) legislation, a registered pension scheme which is an occupational pension scheme may make a loan to a person who is, or has been, a sponsoring employer (subject to certain restrictions – see RPSM07103050 onwards. All schemes may make loans to third parties but loans to members (or those connected to members) are not permitted and any such loans made will be taxed as an unauthorised payment (see RPSM07103170). All loans are only acceptable if they are genuine investments of pension schemes. They should be prudent, secure and on a commercial basis.
| Glossary ( RPSM20000000) |
