Commentary on Sections Example 3 Ne = £5,000; Da = 183; De = 183; Smg = 0 Section 601: Unauthorised personal pension payments
2394.This section identifies unauthorised payments from personal pension schemes or arrangements as pension income. It derives from section 647 of ICTA.
2395.Subsection (2) defines “personal pension payment”. It derives from section 647(1) of ICTA.
2396.Subsection (4) deals with the case in which the payment is made at a time when the scheme and the individual’s arrangements are approved. It derives from section 647(2)(a) of ICTA. A payment that is not authorised by the scheme rules is taxable.
2397.Subsection (5) deals with the case in which the payment is made at a time when the scheme is not approved. It derives from section 647(2)(b) of ICTA. A payment is taxable if it would not have been authorised by the rules of the scheme when the scheme was last approved.
2398.Subsection (6) deals with the case in which the payment is made at a time when the arrangements are not approved. It derives from section 647(2)(b) of ICTA. A payment is taxable if it would not have been authorised by the arrangements when the arrangements were last approved.
2399.Subsection (7) provides that “payment” includes non-cash payment. It derives from section 647(4) of ICTA.