Unauthorised 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...

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The government has also tabled draft legislation in Parliament. Once the statutory instrument (SI) is approved, BNPL products will be regulated 12 months after the SI is made. Lenders should expect the framework in force by end-2026. Although the policy trajectory is set, several key points remain unresolved. Key aspects of BNPL Regime Going forward, regulated BNPL agreements will be called regulated deferred payment credit agreements—deferred payment credit, or DPC. Scope In a boost for merchants, BNPL will be regulated only where a third-party lender is involved. An anti-avoidance measure tackles reseller-style models: where a lender buys the goods and resells them as the merchant, the deal is regulated, not exempt. Most merchants offering DPC will not need FCA authorisation as credit brokers. Unauthorised merchants must have financial promotions approved by an authorised firm—usually the third-party lender, if it holds the relevant permission. The broking exclusion does not currently extend to domestic premises suppliers; this remains under review after late-stage...

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Types of debts to be recovered by local authorities A local authority debt recovery team manages the collection of sums owed, conducted by the in-house unit or by supervising outsourced providers, spanning numerous liabilities including the following: council tax—a household levy imposed by local authorities in Britain, determined by a property’s assessed value and the number of residents. Refer to Practice Notes: Council tax and Council Tax Enforcement non-domestic rates—also called business rates, collected by billing authorities to support local services. Refer to Practice Note: National non-domestic rates—billing recovery, exemptions and reliefs. parking fines—penalties for unauthorised parking (eg parking in disabled bays, on double yellow lines, etc), exceeding permitted time limits, or parking without a ticket sundry debts—smaller amounts linked to unpaid rents, former tenants’ arrears, funeral expenses, and overpayments of housing benefit adult social care debt—arising where a financial assessment decides a person is responsible for all or part of the cost of their care and support needs. Refer to Practice...

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 This Practice Note examines breaches of trustees’ duties that consist solely of negligent acts or omissions, and do not extend to misapplying trust funds or infringing fiduciary duties, such as the obligation on trustees to put beneficiaries’ interests before their own. Liability for misapplying trust property and for fiduciary breaches is treated differently from liability for a negligent breach of trust, and those topics are addressed in other Practice Notes. Before considering negligent breach, it is necessary to outline how it differs from other categories of breach. In short, a trustee who commits a negligent breach of trust is liable to furnish equitable compensation, a remedy akin to a professional’s liability in negligence. This is to be distinguished from a trustee’s obligation to restore the trust where the assets have been misapplied by, for example, paying the wrong persons, making payments in circumstances where payment is unauthorised, or undertaking unauthorised investments (as opposed to failing to exercise due care when choosing between investments that are authorised)....