RPSM03100630 - Technical Pages: Protecting pre 6/4/06 pension rights from tax charges: Notifying HMRC: Fraudulent or negligent information

Fraudulent or negligent information

If an individual fraudulently or negligently

• provides false information in connection with any notification (including an enquiry into a notification), or
• produces or makes available an incorrect document to HMRC in connection with any notification (including an enquiry into a notification)

the individual may be liable to a penalty.

A penalty will be due if as a result of the incorrect information, document or certificate

• the individual’s lifetime allowance, or
• the amount of pension commencement lump sum to which they are entitled

would be greater than it actually is.

The penalty will be an amount up to 25% of

• the difference between the individual’s claimed lifetime allowance (based on the incorrect information etc. provided) and the higher of
• the member’s actual lifetime allowance, and
• the standard lifetime allowance, plus
• the difference between the individual’s pension commencement lump sum entitlement (based on the incorrect information etc. provided) and the actual amount of the individual’s pension commencement lump sum entitlement.