Section 183 Effect of unauthorised borrowing: money purchase arrangements other than collective money purchase arrangementsI1C1C2
Subsection (2) applies if a registered pension scheme borrows in respect of a money purchase arrangement an amount which it is not authorised to borrow under section 182.
The pension scheme is to be treated as having made a scheme chargeable payment—
if subsection (3) applies, of an amount calculated in accordance with subsection (4), and
otherwise, of the amount borrowed.
This subsection applies if, immediately before the amount is borrowed—
If subsection (3) applies, the amount of the scheme chargeable payment is—
In subsections (3) and (4)—
APB is the aggregate of the amounts previously borrowed in respect of the arrangement (excluding any amounts which have been repaid),
AB is the amount borrowed, and
VA is the value of the arrangement, calculated in accordance with section 182(3), immediately before the amount is borrowed.
Annotations
Textual amendments
- F1
Words in s. 183 heading inserted (1.8.2022) by Finance Act 2021 (c. 26), Sch. 5 paras. 7(2), 25(1); S.I. 2022/874, reg. 2
Modifications
- C1
Ss. 182-185 excluded (6.4.2006) by The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), regs. 1, 16
- C2
S. 183 modified (retrospective to 6.4.2011) by Finance Act 2011 (c. 11), s. 68(2)(6)
Commencement
- I1
Ss. 160-274, 281, Schs. 30-35 in force at 6.4.2006 but any power to make an order or regulations under those provisions may be exercised at any time after Royal Assent, see s. 284