RPSM10303060 - Scheme Administrator Pages: Death benefits: Payment of lump sums: Member dies before or after age 75: Winding-up a scheme simply to facilitate payment of a lump sum death benefit

Member dies before or after age 75: Winding-up a scheme simply to facilitate payment of a lump sum death benefit

Where the winding-up of a registered pension scheme has begun, and HMRC consider that the scheme is being wound-up wholly or mainly for the purpose of facilitating payment of one or more

• winding-up lump sum(s)
• winding-up lump sum death benefit(s),

the scheme administrator will become liable to a penalty of up to £3,000 in respect of each member or recipient paid such a lump sum by the scheme.