Taxes Consolidation Act 1997 Schedule 23 paragraph 7

Unauthorised payments from approved schemes

Paragraph 7 of Schedule 23 provides that an employee is chargeable to tax under Schedule E on any payment from an approved scheme that is not expressly authorised by the scheme rules or that is made after the scheme has lost its approved status.

• A payment from an approved scheme is taxable on the employee if it is not expressly authorised by the rules of the scheme.
• A payment is also taxable if it is made at a time when the scheme is no longer approved and would not have been authorised under the rules as they stood when the scheme was last approved.
• The charge to tax arises under Schedule E for the year of assessment in which the payment is made.
• The employee is chargeable to tax on the payment whether or not he or she is the person who actually receives it.