Income Tax (Earnings and Pensions) Act 2003 section 593

Unauthorised payments: application of section 583

Section 593 applies the tax charge on unauthorised payments to former approved superannuation funds, ensuring these older funds are subject to the same rules as approved retirement benefits schemes.

• Unauthorised payments from former approved superannuation funds (originally approved under section 208 of ICTA 1970) are subject to the same income tax charge as unauthorised payments from approved retirement benefits schemes
• A payment is caught by this section if it is not authorised by the rules of the fund and is not made as a consequence of specific transitional provisions in Schedule 6 to the Finance Act 1989
• The section does not apply if the payment has already been taxed under section 623 as a return of surplus funds from an additional voluntary contributions scheme, preventing a double tax charge
• Rather than restating the rules, section 593 simply applies the existing provisions in sections 583, 584, 585, and 588 to these former approved superannuation funds

---