The scheme administrator will be liable to a scheme sanction charge on all charges except where the assets used to provide the benefit is not a wasting asset. The amount of the scheme sanction charge is 40% of the scheme chargeable payment.
However where the member or sponsoring employer has been subject to an unauthorised payments charge and has paid the tax due, a deduction will be made to the amount of the scheme sanction charge. The amount of the deduction is the lesser of:
25% of the amount of the scheme chargeable payment, and
the actual amount of tax paid by the member or employer on an unauthorised payment.