An unauthorised payment (see ¶381-000) is also deemed to have been made where:

because a member receives a pension commencement lump sum (see ¶378-500), his contributions to that or any other registered pension scheme are significantly greater than would otherwise be the case; and

the member envisaged that would be the case at the time the lump sum was paid, or, if the contributions were made before the receipt of the lump sum, the time when the contributions first became excessive

(FA 2004, Sch. 29, para. 3A(1), (2), (6)).

The amount of the deemed payment is equal to the ‘appropriate amount’; this is either:

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