HM Revenue & Customs

Nature of the payment or deemed payment

Contents

Benefit in Kind

Further guidance on 'benefits in kind' can be found in the Registered Pension Schemes Manual RPSM 07300040. You can access the manual from the link in the left hand navigation bar.

Transfer to an employer- financed retirement benefit scheme

Further guidance on employer-financed retirement benefit schemes can be found in the Employment Income Manual. This manual can be found on our website.

Transfer to a non-recognised pension scheme which is not a qualifying overseas pension scheme

Refer to the Registered Pension Schemes Manual at RPSM 14301150 for guidance on transfers to non-recognised pension schemes. You can access the manual from the link in the left hand navigation bar.

Error in calculating tax free lump sums

If you pay out excessive tax free sums and this has resulted in a tax loss.

For example, a tax-free Pension Commencement Lump Sum miscalculated because of simple error or facts later came to light which show the tax free amount paid out was excessive. The difference between what should have been paid and what has been paid is an unauthorised payment.

A scheme pension paid using a non-relevant valuation factor

If you have used a valuation factor lower than the relevant valuation factor but you did not seek HMRC agreement to use this factor then the difference between the value of the scheme pension paid to the member and the value using the relevant valuation factor is an unauthorised payment.

Refer to the Registered Pension Schemes Manual at RPSM 11104230 for further guidance on 'non-standard relevant valuation factors'. You can access the manual from the link in the left hand navigation bar.

Benefits paid early other than on the grounds of ill-health, protected pension age or a winding up lump sum

If the benefits were paid earlier than the normal minimum pension age and they weren't paid for reasons (a), (b) or (c) below, then the amount of the benefits provided is an unauthorised payment reportable here. Normal minimum pension age before 6 April 2010 is age 50. On or after 6 April 2010 it is age 55.

The only valid reasons for benefits being paid early are:

  1. Ill health
  2. Because the member was entitled to retain rights held at 5 April 2006 to a normal retirement age below age 50
  3. Winding up lump sums

Loans to or in respect of the employer exceeding 50% of the value of the fund

Further guidance on loans to employers can be found in the Registered Pension Schemes Manual RPSM 07103050 You can access the manual from the link in the left hand navigation bar.

Residential property held directly or indirectly by an investment-regulated pension scheme

Guidance on the meaning of investment-regulated pension scheme and when the scheme is treated as making a scheme chargeable payment can be found in the Registered Pension Schemes Manual at RPSM 07100000. You can access the manual from the link in the left hand navigation bar.

Tangible moveable property held directly or indirectly by an investment-regulated pension scheme

Guidance on the meaning of investment-regulated pension scheme, tangible movable property and when the scheme is treated as making a scheme chargeable payment, can be found in the Registered Pension Schemes Manual at RPSM 07100000. You can access the manual from the link in the left hand navigation bar.

Other

The list of unauthorised payments above is not exhaustive but examples of the most common unauthorised payments. If a payment has been made and it is not an authorised payment and it is not in one of the categories above it should be reported here. A short description is all that is needed similar to those provided above. You should include under 'Other' unauthorised payments resulting from recycled lump sums. Refer to the Registered Pension Schemes Manual RPSM 04104900 for further guidance on recycled lump sums. You can access the manual from the link in the left hand navigation bar.

Further guidance on authorised and unauthorised payments can be found in the Registered Pension Schemes Manual at RPSM 04100040.

If you selected 'Other' you must complete the brief description.