Finance Act 2004

213Surchargeable unauthorised employer paymentsU.K.

(1)This section identifies which unauthorised employer payments made by a registered pension scheme to or in respect of a [F1person who is or has been a] sponsoring employer are surchargeable.

(2)If the surcharge threshold is reached before the end of the period of 12 months beginning with a reference date, each unauthorised employer payment made to or in respect of the [F2person] in the surcharge period is surchargeable.

(3)The surcharge period is the period—

(a)beginning with the reference date, and

(b)ending with the day on which the surcharge threshold is reached.

(4)The first reference date is the date on which the pension scheme first makes an unauthorised employer payment to or in respect of the [F3person].

(5)Each subsequent reference date is the date, after the end of the previous reference period, on which the pension scheme next makes an unauthorised employer payment to or in respect of the [F4person].

(6)The previous reference period is the period of 12 months beginning with the previous reference date or, if the surcharge threshold is reached in that period, is the surcharge period ending with the date on which it was reached.

(7)The surcharge threshold is reached if the unauthorised payments percentage reaches 25%.

(8)The unauthorised payments percentage is the aggregate of the percentages of the pension fund used up by each unauthorised employer payment made by the pension scheme to or in respect of the [F5person] on or after the reference date.

(9)The percentage of the pension fund used up on the occasion of an unauthorised employer payment is—