RPSM07109230 – Technical pages: Investments: Taxable property: Direct holding of taxable property: What tax charges apply to direct holdings?

What tax charges apply to direct holdings?

If an investment-regulated pension scheme acquires a direct holding in taxable property this creates an unauthorised payment charge on the member for the purposes of whose arrangement the property is held. So the member is subject to the unauthorised member payments charge at 40% on the relevant unauthorised payment value. The scheme administrator is liable to the scheme sanction charge, generally an amount of 15% of the value. If certain limits are exceeded the member may also be subject to the unauthorised payments surcharge at 15%. See RPSM04104000 for further details of all these charges.

The amount of the charge is set out in RPSM07109240

Income or deemed income received in relation to the asset is charged to the scheme sanction charge so the scheme administrator is liable to the scheme sanction charge at 40%. See RPSM04104000 for further details of this charge.

Capital gains on the disposal of assets are charged to the scheme sanction charge so the scheme administrator is liable to the scheme sanction charge at 40%. See RPSM04104000 for further details of this charge.

Glossary ( RPSM20000000)