RPSM04105010 - Technical Pages: Taxation: Other tax charges: De-registration charge
The de-registration charge
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If HMRC withdraws the registration of a
registered pension scheme an income tax charge
called the de-registration charge will be due.
The amount of the de-registration charge is 40% of the total
of the amount of
- sums (cash) and
- the market value of any assets
held by the scheme immediately before it ceased to be a
registered pension scheme.
The
scheme administrator immediately before
registration of the scheme was withdrawn is liable for the
de-registration tax charge, regardless of that scheme
administrator's residence or domicile status for UK tax purposes.
If more than one person is the scheme administrator at that
time, each person is jointly and severally liable for the tax due.
This means that each person can be asked to pay the whole amount of
tax due. If one person pays part of the tax due, all persons are
discharged from liability in respect of that part of the tax that
has been paid. However, all persons, including the one who made the
part payment, would still each be liable to pay the whole of the
remaining amount due. If the tax liability is met in full by one or
more persons, all persons concerned are discharged from liability
for the full amount.
The charge is a free-standing tax charge, which means any
losses that a taxpayer may have cannot be set against the tax
charge.
RPSM04105020 to
RPSM04105070 gives more information
on how a scheme would be de- registered and what happens when a
scheme is de-registered.
| Glossary ( RPSM20000000) |
