Section 23 Power to pay compensationC2C4C7C14C16I1I2C1C3C5C6C8C9C10C11C12C13C15C17C18

The scheme manager for a Chapter 1 legacy scheme may pay amounts by way of compensation in respect of compensatable losses incurred by members or, in the case of deceased members, their personal representatives.

Scheme regulations for a Chapter 1 legacy scheme may make provision under which an employer in relation to the scheme is required to reimburse the scheme manager for amounts paid under subsection (1).

For the purposes of this section a loss incurred by a member, or by a member’s personal representatives, is “compensatable” if and to the extent that—

The first condition is that the loss is attributable to, or is reasonably regarded as attributable to, a relevant breach of a non-discrimination rule.

The second condition is that the loss is attributable to the application of any provision of, or made under, this Chapter.

The third condition is that—

In subsection (6) “relevant member” means a member of the scheme—

In this section (subject to subsection (10)) “loss” includes a loss of any kind including, in particular, a Part 4 tax loss.

In this section “Part 4 tax loss”, in relation to a member, means a loss arising as a result of the member—

In this section “loss” does not include an amount that is payable under this Chapter or under regulations made by virtue of this Chapter.

In this section “non-discrimination rule” means a rule that is, or at any time was, included in a Chapter 1 scheme by virtue of—

For the purposes of this section a breach of a non-discrimination rule is “relevant” if it arises from the application of—

Subsection (1) does not confer power to pay amounts by way of compensation in respect of compensatable losses so far as—

whether pursuant to an order of a court or tribunal or otherwise.