RPSM07300050 - Scheme Administrator Pages: Investments: Can an employer use a pension scheme asset?

Can an employer use an asset owned by their registered pension scheme?

An employer or company associated or connected to the employer may use an asset owned by their pension scheme but for instance in the case of a property owned by the scheme would have to pay the commercial rent due on the property to the scheme. Failure to pay the commercial amount for the use of an asset would lead to an unauthorised payments charge on the employer of an amount equivalent to the shortfall.

The scheme administrator should obtain a professional independent valuation for all leases between the scheme and a connected party.