| [s174] |
There are many types of transaction which may be entered into by
a
registered pension scheme which have the effect of
shifting value from the scheme to a person who is, or has been, a
scheme member or a connected person (within section 839 ICTA 1988)
(see
RPSM07102130) or to a person who is,
or has been, a
sponsoring employer. Value may be shifted by
either increasing the value of an asset, or decreasing a liability
of a scheme member or sponsoring employer without actually creating
a payment.
Where value is passed from the scheme to either a member (or
a person who has been a scheme member) or a sponsoring employer (or
a person who has been a sponsoring employer), the amount of the
value shifted out of the scheme is treated as an unauthorised
payment if the amount passed is other than what can be expected on
arms length terms. A scheme sanction charge will also be made on
the scheme.
| Glossary ( RPSM20000000) |
