{
  "url": "https://openlegislation.uk/finance-act-2004/section-266B",
  "json_url": "https://openlegislation.uk/finance-act-2004/section-266B.json",
  "legislation": "ukpga/2004/12",
  "legislation_title": "Finance Act 2004",
  "legislation_url": "https://openlegislation.uk/finance-act-2004",
  "path": "section/266B",
  "kind": "section",
  "number": "266B",
  "heading": "Scheme's liability",
  "text": "(1) This section applies where—\n(a) the scheme administrator of a registered pension scheme has become liable to the scheme sanction charge in respect of an unauthorised member payment, and\n(b) property or money is transferred, or a sum paid, towards a registered pension scheme pursuant to a relevant order as a result of the unauthorised member payment.\n(2) The scheme administrator may, within the period of one year beginning with the day on which the property or money is transferred, or the sum paid, claim relief from the relevant proportion of the scheme sanction charge.\n(3) The relevant proportion of the scheme sanction charge is—\nASOUMPwhere—\nASO is the amount subject to the relevant order, that is the aggregate of the market value of any property and the amount of any money transferred, or the amount of the sum paid, towards a registered pension scheme pursuant to the relevant order in respect of the unauthorised member payment, and\nUMP is the amount of the unauthorised member payment.\n(4) But if ASO is greater than UMP, the relevant proportion of the scheme sanction charge is the whole of it.\n(5) In this section “relevant order” means an order under any of the following—\n(a) section 16(1), 19(4) or 21(2)(a) of the Pensions Act 2004 (orders for money etc to be restored to pension schemes), or\n(b) Article 12(1), 15(4) or 17(2)(a) of the Pensions (Northern Ireland) Order 2005 (corresponding provision for Northern Ireland).",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Ss. 266A, 266B and cross-heading inserted (6.4.2006) by Finance Act 2005 (c. 7), Sch. 10 paras. 4, 64(1)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Words in s. 266B(1)(b) substituted (with effect in accordance with Sch. 7 para. 16 of the amending Act) by Finance Act 2014 (c. 26), Sch. 7 para. 15(2)"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Word in s. 266B(3) inserted (with effect in accordance with Sch. 7 para. 16 of the amending Act) by Finance Act 2014 (c. 26), Sch. 7 para. 15(3)(a)"
    },
    {
      "type": "F",
      "label": "F4",
      "text": "Words in s. 266B(3) substituted (with effect in accordance with Sch. 7 para. 16 of the amending Act) by Finance Act 2014 (c. 26), Sch. 7 para. 15(3)(b)"
    },
    {
      "type": "F",
      "label": "F5",
      "text": "S. 266B(5) inserted (with effect in accordance with Sch. 7 para. 16 of the amending Act) by Finance Act 2014 (c. 26), Sch. 7 para. 15(4)"
    },
    {
      "type": "C",
      "label": "C1",
      "text": "S. 266B 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"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2004/12/section/266B",
    "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."
  }
}