RPSM15108080 - Technical Pages: Special annual allowance: Relevant refund amounts: Authorised member payments

This guidance only applies for the 2010-11 and 2011-12 tax years.

Authorised member payments

For it to be an authorised member payment, the amount of the contributions refund lump sum in respect of a particular arrangement cannot exceed the amount of the contributions paid by, or on behalf of, the individual under that arrangement in the particular tax year. In effect, this allows the individual only to get back his or her contributions (which might include contributions paid on behalf of the individual by a third party). The payment does not allow for any employer contributions paid in respect of the individual to be returned to the individual.

However, certain deductions might have to be made in relation to the amount of contributions paid by, or on behalf of, the individual (see RPSM15108030) and, in relation to certain types of pension scheme, there is a limitation in relation to the nature of the contributions to which the refund relates (see RPSM15108040).