Part 2Unauthorised payments

Chapter 2Top-up payments and excess amounts

Excess amounts

7.—(1) A scheme administrator is entitled to recover an excess amount from HMRC if—

(a)it can be offset under paragraphs (2) or (3) or reclaimed under paragraph (4), and

(b)the scheme administrator includes it in a return in accordance with paragraph (5).

(2) An excess individual amount can be offset against an unauthorised payments charge that arises on a top-up payment in relation to the same individual, to the extent that it does not exceed that charge.

(3) An excess scheme amount can be offset against a scheme sanction charge that arises on a top-up payment in relation to the same individual, to the extent that it does not exceed that charge.

(4) An excess amount can be reclaimed if it relates to the making of a historic payment on or after 6th April 2019.

(5) An excess amount can only be included in a return if—

(a)the return is made on or before 31st January 2031, and

(b)either—

(i)the return includes a top-up payment that relates to the same individual, or

(ii)the excess amount is being reclaimed and the condition in paragraph (6) is met.

(6) The condition is that either—

(a)the scheme administrator has not made a top-up payment that relates to the same individual and does not reasonably expect to do so, or

(b)it was not reasonably practicable for the excess amount to be included in the same return as a top-up payment that relates to the same individual.

(7) An excess amount may not be recovered by any other person or in any other way, save that a scheme administrator may make an application under 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) in respect of an excess amount that cannot be recovered under these Regulations.

(8) Section 42 of, and Schedule 1AB to, TMA 1970 (procedure for making claims to recover overpaid tax)(1) do not apply in relation to an excess amount.