Section 160 Payments by registered pension schemesI1

The only payments which a registered pension scheme is authorised to make to or in respect of a F1person who is or has been a member of the pension scheme are those specified in section 164.

In this Part “unauthorised member payment” means—

The only payments which a registered pension scheme that is an occupational pension scheme is authorised to make to or in respect of a F5person who is or has been a sponsoring employer are those specified in section 175.

In this Part “unauthorised employer payment” means—

F8If an unauthorised member payment or unauthorised employer payment made to or in respect of a person would have been greater but for a reduction made in respect of the whole, or any proportion, of the amount which the scheme administrator considers may be the amount of the liability to the scheme sanction charge in respect of it, it is to be regarded for the purposes of this Part as increased by the amount of the reduction.

But if the amount, or that proportion of the amount, of that liability is in fact less than the amount of the reduction, a subsequent payment of an amount not exceeding the difference between that amount and the amount of the reduction made—

is not to be regarded for the purposes of this Part as an unauthorised member payment or unauthorised employer payment.

In this Part “unauthorised payment” means—

As well as section 157 (de-registration), the following provisions—

specify consequences of making unauthorised payments.

Sections 182 to 185 contain provision about amounts that a registered pension scheme is not authorised to borrow.

F9Sections 185A to 185I contain provision about the receipt of income and gains from taxable property.

As well as section 157, sections 239 and 242 specify consequences of unauthorised borrowing F10and the receipt of income and gains from taxable property.

Schedule 36 contains (in Parts 3 and 4) transitional provision about unauthorised payments.