Unauthorised member payment meaning

Under the Finance Act 2004 (FA 2004) and its associated regulations, payments made by a registered pension scheme to, or on behalf of, a member or an employer are categorised as either: authorised payments unauthorised payments Any payment that is not an authorised payment will be treated as unauthorised, unless it falls within a statutory exception; moreover, certain types of payment are expressly identified as unauthorised. Unauthorised payments—consequences Subject to their own rules, registered pension schemes may make unauthorised payments Unauthorised payments typically trigger tax charges for both the recipient and the scheme, and can in the end result in de-registration, causing the loss of the scheme’s tax-privileged status Reporting obligations apply to schemes where unauthorised payments have occurred Benefits offered under registered pension schemes are generally designed to prevent unauthorised payments arising...

In this issue: Court of Protection UK taxes for Private Client HMRC Manuals updates Family businesses and ownership structures Insolvency—Private Client Digital assets and cryptoassets Contentious trusts and estates Pensions, insurance and tax-efficient investments Scotland, Wales and Northern Ireland Question of the week Additional Private Client updates Daily and weekly news alerts LexTalk®Private Client: a Lexis®PSL community New and updated content Dates for your diary Trackers Latest Q&As Useful information Court of Protection Court of Protection proposes travel guidance for cases with a risk of future forced marriage (Luton Borough Council v G) The Court of Protection sanctioned a six-month interim forced marriage protection order (FMPO) concerning AG and exercised the inherent jurisdiction to govern AG’s contact with her parents. This followed material showing parental control and coercion, the prospect of AG travelling abroad for ‘a wedding’, and indications that, if parental contact matched her...

In this issue: Court of Protection; UK taxes for Private Client; HMRC Manuals updates; Tax avoidance, evasion and non-compliance; Insolvency—Private Client; Contentious trusts and estates; Pensions, insurance and tax efficient investments; International; Question of the week; Additional Private Client updates this week; Daily and weekly news alerts; LexTalk®Private Client: a Lexis®PSL community; New and updated content; Dates for your diary; Trackers; Latest Q&As; Useful information. Court of Protection Court of Protection rules that evidence from a family member and ‘expert by experience’ is not admissible in dispute over treatment plan (University College London Hospitals NHS Foundation Trust v HER) This Court of Protection matter involved HER, a 53-year-old with a metabolic disorder and epilepsy, who lacks capacity to decide on her medical care. A disagreement arose between the treating hospital trust (the Trust) and HER’s sister (SR) about the Trust’s proposed new medication plan for HER. SR objected to the plan, drawing on a lifetime of observing HER’s responses to different treatments...

In this issue: Probate Trusts Powers of attorney and advance decisions Court of Protection Elderly and vulnerable clients UK taxes for Private Client HMRC Manuals updates Tax avoidance, evasion and non-compliance Contentious trusts and estates Pensions, insurance and tax efficient investments International Question of the week Daily and weekly news alerts LexTalk®Private Client: a Lexis+® community New and updated content Dates for your diary Trackers Useful information Probate Testamentary capacity, undue influence, and a missing Will (Burgess v Whittle) This ruling considers core probate dispute themes: testamentary capacity, undue influence, and a lost original. The High Court validated a 2014 Will excluding one child, dismissing challenges on capacity, knowledge and approval, and coercion. Three principles were reiterated: (1) a condition impacting capacity does not, by itself, invalidate a Will—there must be proof of incapacity at execution; (2) undue influence must be precisely pleaded and backed...

A registered pension scheme may provide benefits without an overall ceiling. Nevertheless, under the Finance Act 2004 (FA 2004), where a scheme makes an unauthorised payment, tax charges arise for both the recipient and the scheme unless a specific exception applies (though, in certain situations, individuals and companies may seek from HMRC a discharge of liability for those charges where appropriate). For additional detail, see Authorised and unauthorised payments and Unauthorised payments: tax charges and reporting requirements, together with the associated reporting obligations outlined there. Exceptions in special circumstances At times, pension schemes make mistakes that lead to unauthorised payments being issued. There are also situations where making an unauthorised payment is necessary to ensure a beneficiary is treated equitably. Accordingly, there are several exceptions to the standard rules governing unauthorised payments. Such exceptions apply only in particular, defined circumstances...

THIS PRACTICE NOTE RELATES TO REGISTERED OCCUPATIONAL PENSION SCHEMES A key feature of registered occupational pension schemes is their capacity to offer ill-health (often referred to as 'incapacity') benefits to members. These benefits are particularly significant where members are required to leave employment ahead of their normal pension date (NPD) as a result of serious illness... This Practice Note considers the range of issues that may arise when construing the rules of a registered occupational pension scheme, including issues of interpretation and application, for the purpose of deciding whether ill-health benefits ought to be awarded to a member. For further detail on the considerations relevant to trustees of occupational pension schemes and/or employers who are required to make decisions in relation to members’ ill-health early retirement requests, see Practice Note: Ill-health early retirement—decision-making and exercise of discretion... Nature of ill-health early retirement benefits Ill-health early retirement benefits are calculated strictly in line with the scheme rules. Benefits provided by defined benefit occupational pension schemes are frequently—though...

Before 6 April 2006, personal pension schemes had to offer retirement benefits on a money purchase basis to gain HMRC approval. Although that rule no longer applies, its legacy—together with the original, narrow list of authorised providers—has influenced the investment structures and strategies that are typically available in the personal pensions market... Investment strategy Unlike trustees of occupational pension schemes, contract-based pension providers are not obliged to prepare a statement of investment principles (SIP). Their main public-facing document is the Independent Governance Committee (IGC) annual report. IGCs must act in the interests of policyholders. While their primary role is to assess value for money, the report goes beyond that: it sets out how the IGC has considered policyholders’ interests more broadly. It must also detail the arrangements the pension provider has established to ensure that policyholders’ views are directly conveyed to the IGC. For further information, see Practice Note: Independent governance committees (IGCs) and pensions...