Section 207 Authorised surplus payments chargeI1C1
United Kingdom
A charge to income tax, to be known as the authorised surplus payments charge, arises where an authorised surplus payment is made to a sponsoring employer by an occupational pension scheme that is a registered pension scheme.
The person liable to the authorised surplus payments charge is the scheme administrator.
The rate of the charge is F325% in respect of the authorised surplus payment.
The Treasury may by order increase or decrease the rate for the time being specified in subsection (4).
Subsection (1) does not apply to any authorised surplus payment—
to the extent that (if this section had not been enacted) the sponsoring employer would have been exempt, or entitled to claim exemption, from income tax or corporation tax in respect of it, or
if the sponsoring employer is a charity.
F4Subsection (1) does not apply to an authorised surplus payment to the extent that the payment is funded (directly or indirectly) by a surrender of (or an agreement to surrender) benefits or rights which results in the registered pension scheme being treated as making an unauthorised payment under section 172A.
Terms used in subsection (6A) which are defined in section 172A have the same meaning as they have in that section.
An authorised surplus payment in respect of which income tax is charged under this section is not to be treated as income for any purpose of the Tax Acts.
Schedule 36 contains (in Part 4) transitional provisions about the authorised surplus payments charge.
Annotations
Textual amendments
- F1
Words in s. 207(3) omitted (with effect in accordance with Sch. 46 para. 132 of the amending Act) by virtue of Finance Act 2013 (c. 29), Sch. 46 para. 124
- F2
Words in s. 207(3) omitted (for the tax year 2025-26 and subsequent tax years) by virtue of Finance Act 2025 (c. 8), s. 40(4), Sch. 9 para. 15(3)(c)
- F3
Word in s. 207(4) substituted (6.4.2024) by The Authorised Surplus Payments Charge (Variation of Rate) Order 2024 (S.I. 2024/335), arts. 1, 2
- F4
S. 207(6A)(6B) inserted (with effect in accordance with Sch. 7 para. 12 of the amending Act) by Finance Act 2014 (c. 26), Sch. 7 para. 11
Modifications
- C1
S. 207 modified (6.4.2006) by The Registered Pension Schemes (Splitting of Schemes) Regulations 2006 (S.I. 2006/569), regs. 1(1), 3(1)(2), Sch. 3 Pt. 1
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