RPSM09105170 - Technical Pages: Member benefits: Lump sums: Winding-up lump sum: Winding-up a scheme simply to facilitate payment of lump sum

Winding-up a scheme simply to facilitate payment of winding-up lump sum

Where the winding-up of a registered pension scheme has begun, and HMRC consider that the scheme is being wound-up wholly or mainly for the purpose of facilitating payment of one or more

• winding-up lump sum(s), or
• winding-up lump sum death benefit(s),

the scheme administrator will become liable to a penalty of up to £3,000 in respect of each member or recipient paid such a lump sum by the scheme.