RPSM10300040 - Scheme Administrator Pages: Death benefits: Authorised and unauthorised member payments

What is the scheme sanction charge?

The making of an unauthorised member payment following the death of the member may also trigger a scheme sanction charge on the scheme administrator. This is a charge to income tax in any tax year that a registered pension scheme makes one or more scheme chargeable payments. 

A scheme administrator can claim relief from the scheme sanction charge in specified circumstances. RPSM04104860 gives more information.

A scheme administrator is also able to make an application to HMRC to ask for a scheme sanction charge liability to be discharged. - see RPSM04104870.