Part 2Unauthorised payments

Chapter 3Administration

Returns

9.—(1) A scheme administrator—

(a)must make a return to HMRC in respect of a top-up payment, and

(b)may make a return to HMRC in respect of any excess amount.

(2) A return must—

(a)contain the information prescribed in the Schedule,

(b)relate to all top-up payments made in a relevant period, and

(c)be made before the end of the period of 45 days beginning with the day immediately following the end of the relevant period.

(3) Where a scheme administrator made a top-up payment before the coming into force of these Regulations, this regulation applies as if that payment was made on the day after these Regulations come into force.

Assessment

10.—(1) An officer of HMRC may make an assessment to—

(a)the unauthorised payments charge, and

(b)the scheme sanction charge,

in the amounts that should, in the officer’s opinion, be charged on a person who is liable to such a charge in connection with a top-up payment.

(2) An assessment on a scheme administrator may relate to—

(a)more than one top-up payment, and

(b)more than one individual.

(3) Where a return has been made in respect of a top-up payment, an assessment under paragraph (1) may be made at any time on or before—

(a)the date six years after the day on which the return was made, if the scheme administrator has carelessly caused the return to be inaccurate in a material respect,

(b)the date 20 years after the day on which the return was made, if the scheme administrator has deliberately caused the return to be inaccurate in a material respect, or

(c)in any other case, the date four years after the day on which the return was made.

(4) If a return has not been made in respect of a top-up payment, an assessment under paragraph (1) may be made at any time on or before the date 20 years after the last day on which such a return could have been made.

(5) In this regulation—

(a)section 118(5) to (7) of TMA 1970 (interpretation: bringing about a situation carelessly or deliberately)(1) applies for the purposes of determining whether a scheme administrator carelessly or deliberately caused a return to be inaccurate in a material respect, and

(b)references to circumstances brought about by a scheme administrator include circumstances brought about by another person acting on behalf of that scheme administrator.

Repayment

11.—(1) An excess amount or an amount of repayment interest included in a return must be paid to a scheme administrator unless, within the specified period, an officer of HMRC notifies the scheme administrator that, in the officer’s opinion, the amount—

(a)is not properly recoverable by the scheme administrator, or

(b)is properly recoverable in a lesser amount.

(2) In paragraph (1) “the specified period” means the period of 90 days beginning with the date on which the return was received by HMRC.

(3) An appeal may be brought against a notification under paragraph (1) as if it were a conclusion stated in a closure notice under paragraph 7 of Schedule 1A to TMA 1970 (completion of enquiry into claim)(2).

Recovery of overpayments

12.—(1) Where an officer of HMRC considers that an amount was not properly recoverable as an excess amount, either wholly or partially, that amount may be assessed and recovered under this regulation as if it were unpaid tax.

(2) An assessment under this regulation must be made on or before the date four years after the day on which a return was made in respect of the excess amount.

Power to withdraw assessments

13.—(1) HMRC may withdraw an assessment under regulation 10 or 12, or a notification under regulation 11, by notice to the person to which it relates.

(2) An assessment or notification that has been withdrawn under this regulation ceases to have effect and is to be taken as never having had any effect.

Obligations under other enactments

14.—(1) An individual is not obliged to comply with an obligation under Part 2 of TMA 1970 (returns of income and gains) in respect of a top-up payment.

(2) A scheme administrator is not, in respect of a matter dealt with in a return, obliged to make or amend—

(a)an event report, or

(b)a return under section 254 of FA 2004 (accounting for tax by scheme administrators).

(3) Where, before the coming into force of these Regulations, an assessment was made by virtue of—

(a)section 9 (returns to include self-assessment) or 29 (assessment where loss of tax discovered) of TMA 1970, or

(b)regulation 4 of the Registered Pension Schemes (Accounting and Assessment) Regulations 2005 (the making of assessments)(3),

that assessment is to be treated as not including, and never having included, an amount in respect of a top-up payment.

Interest and penalties

15.—(1) Sections 101 (late payment interest on sums due to HMRC) and 103 (rates of interest) of the Finance Act 2009 apply in relation to an amount of income tax which is assessed and recoverable by virtue of an assessment under regulation 10 or 12 as if it were an assessment under section 29 of TMA 1970.

(2) Schedule 55 to the Finance Act 2009 (penalty for failure to make returns) applies in relation to a failure to make a return required by regulation 9(1)(a) on or before the date in regulation 9(2)(c) as if it were a failure to make or deliver a return under section 254 of FA 2004 on or before the filing date.

(3) Schedule 24 to the Finance Act 2007 (penalties for errors)(4) applies to a return as if it were a return under section 254 of FA 2004.

Electronic communications

16.—(1) The Registered Pension Schemes and Overseas Pension Schemes (Electronic Communication of Returns and Information) Regulations 2006(5) apply as if—

(a)a return,

(b)an assessment under regulation 10 or 12, or

(c)a notification under regulation 11(1),

were information specified in Schedule 2 to those Regulations.

(2) The Income and Corporation Taxes (Electronic Communications) Regulations 2003(6) apply to a payment made by HMRC in connection with the operation of these Regulations as if it were a payment made in connection with the operation of Schedule 1A to TMA 1970.

Split schemes

17.—(1) The Registered Pension Schemes (Splitting of Schemes) Regulations 2006(7) have effect as if, in Part 2 of Schedule 3, at the end there were inserted—

“The Public Service Pension Schemes (Rectification of Unlawful Discrimination) (Tax) Regulations 2023

The Public Service Pension Schemes (Rectification of Unlawful Discrimination) (Tax) (No. 2) Regulations 2023

The Public Service Pension Schemes (Rectification of Unlawful Discrimination) (Tax) Regulations 2025”.

(2) The amendment made by paragraph (1) does not impose any liability on a sub-scheme administrator for any act or omission that took place before the coming into force of these Regulations.

(3) In this regulation “sub-scheme administrator” has the meaning given in regulation 1(2) of the Registered Pension Schemes (Splitting of Schemes) Regulations 2006.

Amendment of the Public Service Pension Schemes (Rectification of Unlawful Discrimination) (Tax) (No. 2) Regulations 2023

18.—(1) Regulation 20 of the Public Service Pension Schemes (Rectification of Unlawful Discrimination) (Tax) (No. 2) Regulations 2023 (application required by schemes to reclaim overpayment of scheme sanction charge resulting from rectification) is amended as follows—

(a)in paragraph (1) omit the “and” after sub-paragraph (b);

(b)in paragraph (1) after sub-paragraph (c) insert “, and

“(d)the amount cannot be recovered from HMRC as an excess amount in accordance with regulation 7 of the Public Service Pension Schemes (Rectification of Unlawful Discrimination) (Tax) Regulations 2025.”;

(c)in paragraph (7) for “1st April 2027” substitute “31st January 2031”;

(d)in paragraph (8)(a) after paragraph (i) insert—

“(ia)a declaration that the claimed amounts cannot be recovered from HMRC in accordance with regulation 7 of the Public Service Pension Schemes (Rectification of Unlawful Discrimination) (Tax) Regulations 2025,”.

(2) The amendments made by paragraph (1) do not have effect in relation to an application that was made, under regulation 20 of the Public Service Pension Schemes (Rectification of Unlawful Discrimination) (Tax) (No. 2) Regulations 2023, before the coming into force of these Regulations.