RPSM04301100 - Scheme Administrator Pages: Taxation: tax and penalties payable by the administrator: Tax charges on taxable property

Tax charges on taxable property

If an investment regulated pension scheme invests in taxable property, as well as there being an unauthorised payment charge on the member of 40% of the property’s value, the scheme administrator will be liable to a scheme sanction charge of 15%.

Any income from the taxable property would be taxed at 40% and any capital gains earned as a result of the disposal of such assets would also be taxed at 40%. If the income from the property was less than 10% (e.g. as with ground rents) then the tax would be based on 10% of the property’s value.