| s179, sch30 |
Where a loan exceeds 50% of the net value of the scheme at the time the loan is taken out, an unauthorised payment charge will arise on the difference between the amount of the loan and 50% of the aggregate of the amount of the cash sums held, and the market value of the assets held for the purposes of the pension scheme before the loan is made.
SS Ltd Pension Scheme makes a loan to SS Ltd of £100,000.
Before the loan is made, the value of the scheme is £180,000.
SS Ltd will be subject to an unauthorised payments charge of
£100,000 - £90,000 (50% of £180,000) = £10,000
@ 40%.
The pension scheme will also be liable to a scheme sanction
charge (see
RPSM07108030).
| Glossary ( RPSM20000000) |
