Hogan Lovells

Key Dates

Pension schemes newsletter 93 issued on 30 November 2017. 


HMRC newsletter 93 includes a reminder about payments in respect of members who have become bankrupt. HMRC comments that it is aware that some former bankrupts are being advised to tell HMRC that they are not in receipt of pension payments, when a scheme makes payments to certain third parties from the member's arrangement.

HMRC points out that members of registered schemes who have lost their pension rights through bankruptcy remain members of the scheme, regardless of whom a payment is made to. HMRC makes clear that if it is notified that a payment from a registered scheme is not a payment of pension or another form of authorised payment then the payment will be treated as unauthorised, with the consequence that an unauthorised payments charge and, potentially, an unauthorised payments surcharge and scheme sanction charge, will be payable.

HMRC comments that if the payment is a payment of pension, then normal income tax rules apply, including any requirement to pay higher rate tax.

Date Accessed: 28/05/2022