RPSM09103140 - Technical Pages: Member benefits: An alternatively secured pension: Taxation

This guidance only covers members who became entitled to an alternatively secured pension before 6 April 2011. If the member reached age 75 between 22 June 2010 and 5 April 2011 you should also read the guidance in RPSM17100000 onwards.

If the member reached age 75 on or after 6 April 2011 then see the guidance at RPSM09103500.

Taxation of an alternatively secured pension

Any alternatively secured pension paid by a registered pension scheme is taxable as pension income on the recipient through PAYE.

The taxable pension income for a tax year is the full amount of the alternatively secured pension actually paid in that tax year.

The position where the alternatively secured pension limit is breached in a pension year is dealt with on RPSM09103150.

Where the member dies, and the alternatively secured pension payments continue because of a guarantee, then the recipient of the continued payments is taxed under PAYE.