{
  "url": "https://openlegislation.uk/finance-act-2004/section-208",
  "json_url": "https://openlegislation.uk/finance-act-2004/section-208.json",
  "legislation": "ukpga/2004/12",
  "legislation_title": "Finance Act 2004",
  "legislation_url": "https://openlegislation.uk/finance-act-2004",
  "path": "section/208",
  "kind": "section",
  "number": "208",
  "heading": "Unauthorised payments charge",
  "text": "(1) A charge to income tax, to be known as the unauthorised payments charge, arises where an unauthorised payment is made by a registered pension scheme.\n(2) The person liable to the charge—\n(a) in the case of an unauthorised member payment made to or in respect of a person before the person's death, is the person,\n(b) in the case of an unauthorised member payment made in respect of a person after the person's death, is the recipient, and\n(c) in the case of an unauthorised employer payment, is the person to or in respect of whom the payment is made.\n(3) If more than one person is liable to the unauthorised payments charge in respect of an unauthorised payment, those persons are jointly and severally liable to the charge in respect of the payment.\n(4) A person is liable to the unauthorised payments charge whether or not—\n(a) that person,\n(b) any other person who is liable to the unauthorised payments charge, and\n(c) the scheme administrator,\nare resident... ... in the United Kingdom.\n(5) The rate of the charge is 40% in respect of the unauthorised payment.\n(6) The Treasury may by order amend subsection (5) so as to vary the rate of the unauthorised payments charge.\n(6A) An order under subsection (6) may make provision for there to be different rates in different circumstances.\n(7) An unauthorised payment may also be subject to—\n(a) the unauthorised payments surcharge under section 209, and\n(b) the scheme sanction charge under section 239.\n(8) An unauthorised payment is not to be treated as income for any purpose of the Tax Acts.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Words in s. 208(2)(a) substituted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 14(a)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Words in s. 208(2)(b) substituted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 14(b)"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Word in s. 208(2)(c) substituted (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), s. 161(2), Sch. 23 para. 14(c)"
    },
    {
      "type": "F",
      "label": "F4",
      "text": "Words in s. 208(4) 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. 125"
    },
    {
      "type": "F",
      "label": "F5",
      "text": "Words in s. 208(4) 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)(d)"
    },
    {
      "type": "F",
      "label": "F6",
      "text": "S. 208(6)(6A) substituted for s. 208(6) (with effect in accordance with Sch. 2 para. 25 of the amending Act) by Finance Act 2009 (c. 10), Sch. 2 para. 12"
    },
    {
      "type": "C",
      "label": "C1",
      "text": "S. 208 modified (1.4.2012) by The Postal Services Act 2011 (Taxation) Regulations 2012 (S.I. 2012/764), regs. 1(1), 24; S.I. 2012/687; S.I. 2012/688; S.I. 2012/966"
    },
    {
      "type": "C",
      "label": "C2",
      "text": "S. 208 modified (24.4.2025 for the tax year 2023-24 and subsequent tax years) by The Public Service Pension Schemes (Rectification of Unlawful Discrimination) (Tax) Regulations 2025 (S.I. 2025/419), regs. 1(2)(3), 5(1)"
    },
    {
      "type": "I",
      "label": "I1",
      "text": "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"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2004/12/section/208",
    "retrieved_at": "2026-10-28T17:08:09.921968+00:00",
    "licence": "OGL-UK-3.0",
    "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
    "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
  }
}