Taxes Consolidation Act 1997 section 782

Charge to tax: repayments to employer

Section 782 provides for a charge to tax where payments are made from an exempt approved pension scheme back to the employer.

• Where an employer receives a payment from funds held for the purposes of an exempt approved scheme, the payment is taxable either as a trading/professional receipt or under Case IV of Schedule D.
• If the scheme relates to the employer's trade or profession, the payment is treated as a receipt of that trade or profession, taxable when the payment falls due or on the last day the trade or profession is carried on, whichever is earlier.
• If the scheme does not relate to a trade or profession, the employer is charged to tax under Case IV of Schedule D, but only in proportion to the extent that the employer's original contributions qualified for tax relief.
• The section does not apply to payments that were due before the scheme became an exempt approved scheme, and references to payments include transfers of assets or other money's worth.