RPSM09100110 - Technical Pages: Member benefits: Overview: Payments: An authorised and unauthorised member payment

An authorised and unauthorised member payment

The legislation approaches benefit provision under a registered pension scheme, and scheme payments generally, by providing a definitive list of payments such schemes are authorised to make to (or in respect of) its members. Any other payment, or deemed payment, made by that scheme to (or in respect of) a member is classed as an unauthorised member payment.

The definition of payment is wide. The legislation therefore provides a comprehensive list of those authorised member payments, as any payment made to or in respect of a member that is not within the defined authorised member payments will, by definition, be an unauthorised member payment and be taxed accordingly. As such, the legislation covers payments such as transfer payments and payments following a pension sharing order within the authorised member payment definitions.

RPSM09100160 and RPSM09100170 discuss what the legislation means by the terms ‘payment’ and ‘in respect of a member’.

RPSM09100120 details what the various authorised member payments actually are.

RPSM09100130 gives more information on unauthorised member payments