Taxes Consolidation Act 1997 section 787S

Payment of tax due on chargeable excess

Section 787S provides for the filing of returns and payment of tax due on a chargeable excess arising from a benefit crystallisation event, including special reporting obligations where a pension adjustment order applies.

• The pension scheme administrator must file a return with the Collector-General within three months of the end of the month in which the benefit crystallisation event giving rise to the chargeable excess occurs, detailing the administrator, the individual, the pension arrangement, the chargeable excess calculation, and the tax due.
• Where a pension adjustment order applies, additional information must be included in the return to reflect the apportionment of chargeable excess tax between the relevant member and the non-member spouse or civil partner; where a transfer amount has been applied, the subsequent administrator or fund administrator must also file a separate return and, if necessary, notify the non-member of any tax payable directly by them.
• A non-member who is notified that they are liable for all or part of the chargeable excess tax must file a return and pay the tax to the Collector-General within three months of the notification date.
• The standard income tax provisions for assessments, collection, recovery, interest on late payment (at 0.0219 per cent per day), and appeals apply to chargeable excess tax.