Taxes Consolidation Act 1997 Schedule 23 paragraph 6

Unauthorised payments

Paragraph 6 of Schedule 23 sets out the scope of Part 2 of that Schedule, which applies where a non-pension payment is made from an approved pension scheme's funds to or for the benefit of an employee.

• Part 2 of Schedule 23 applies to any payment made to or for the benefit of an employee from funds held for the purposes of an approved pension scheme, other than a payment made in the course of paying a pension.
• The charge covers payments made contrary to the conditions under which the scheme was approved for tax purposes.
• The charge also covers payments made after the scheme's approval has ceased, where those payments would not have been expressly authorised by the scheme rules at the time the scheme was last approved.
• Where a payment falls within Part 2, it is chargeable to tax under Schedule E as employment income of the employee concerned.