An unauthorised payment is treated as having made to a member if an asset held for the purposes of the pension scheme is used to provide a benefit (other than a payment) to:

(1)the member, or

(2)the member’s:

(a)spouse or civil partner;

(b)children or their spouses or civil partners;

(c)parents;

(d)dependants;

(e)domestic staff, or

(f)guests

(FA 2004, s. 173(1), (11)).

An unauthorised payment is also treated as having been made if the benefit is provided after the member's death to a person who at the date of the death was a member of the family or household, (FA 2004, s. 173(4)).

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