7.13.1 The charges

If a registered pension scheme makes an unauthorised payment, it may generate three tax charges and, in extreme circumstances, scheme discontinuance which itself would trigger a discontinuance charge.

The tax charges are:

the unauthorised payment charge (40% of the payment);

the unauthorised payment surcharge (if the payment exceeds a threshold, 15% of the payment); and

the scheme sanction charge (in addition to the other charges, this will be at a rate of 15%. There are circumstances when it is payable by itself at a rate of 40%).

Guidance: PTM 134000, 135000

7.13.2 Scope of ‘payment’

Unauthorised payments may be member payments or employer payments. Payments may be:

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