RPSM07300040 - Scheme Administrator Pages: Investments: Can a member use an asset owned by his registered pension scheme?

Can a member use an asset owned by his registered pension scheme?

Any assets held by a registered pension scheme may be used by a member, or a member of their family or household, but they will be taxed as receiving an unauthorised payment from the scheme.

The amount of the unauthorised payment will be calculated in the same way as a benefit in kind charge would be if they received the use of an asset as an employee from their employer. If the member pays an amount towards the use of the asset, this will be taken into account when calculating the tax charge.

For these purposes a member’s family includes:

• their spouse or civil partner
• their children and their spouses or civil partners
• their parents and
• their dependants.

And the following are members of their household

• their domestic staff and
• their guests.

The member of the scheme will be liable for any tax charge on the use of scheme assets either used by them or members of their family or household.

Where after the member’s death an asset held by the scheme is used to provide a benefit to a person, who, at the time of the member’s death, was a member of the member’s family or household, an unauthorised payments charge will be made on the person receiving the benefit.

The scheme administrator is responsible for calculating any unauthorised payments and for reporting them to HMRC. In addition, in accordance with RPSM07102210 the scheme administrator must provide the member with details of any benefits received by no later than 7 July following the end of the tax year in which the asset was made available.

For further details on how the unauthorised payments are charged for use of scheme assets see RPSM07102210 onwards.