378-530 Relaxation for sums intended as pension-commencement lump sums
Certain payments of lump sums that would otherwise have been unauthorised payments and thereby have triggered unfavourable tax consequences are nevertheless recognised as authorised payments and treated as pension-commencement lump sums in certain circumstances (Registered Pension Schemes (Authorised Payments) Regulations 2009 (SI 2009/1171, reg. 5)).
Three types of lump sum paid in error are treated in this way:
1Commencement lump sums based on pension errors
2Commencement lump sums under money-purchase arrangements and based on calculation errors