RPSM07300130 - Scheme Administrator Pages: Investments: When will tax be due?

When will a tax charge be due?

The following are examples of transactions which will lead to tax charges being due,

6. when the percentage limits for share investment are exceeded,
   
7. when a loan to the employer fails to meet one of the 5 tests,
   
8. when there is a non arms length transaction
   
9. when there is a benefit in kind payment,
   
10. where the borrowing limits are exceeded, and
    
11. where value is shifted out of the pension registered pension scheme.

The scheme administrator must provide details of all unauthorised payments by submitting an event report. They should also make the member/employer aware of any unauthorised payments that arise to enable the payment to be declared by the relevant party.

The scheme administrator must account for any tax due on an Accounting for Tax form (see RPSM07300150).