SE02900 - Emoluments of employees and office holders: payments out of personal pension schemes that are taxable

Section 647 ICTA 1988

A payment made out of a personal pension scheme is chargeable to tax under Schedule E if all the following conditions are satisfied - namely it is:

• made out of an approved personal pension scheme, or one which has at any time been approved
• made to or for the benefit of an individual who has made arrangements in accordance with the scheme

either

• not authorised by the rules of the scheme

or

• made at a time when the scheme or arrangements are not approved, and it would not have been authorised by the rules when it or they were last so approved.

The charge is for the year of assessment in which the payment is made.

This applies equally where an asset or anything else constituting money's worth is transferred to the individual.