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HMRC internal manual

Pensions Tax Manual

Unauthorised payments: deemed or specific situations that are unauthorised payments: benefits in kind: work accommodation or supplies necessary for scheme administration

Glossary PTM000001

Where a person who is, or has been, a member uses an asset as an employee or as a necessary part of their duties as a scheme administrator or trustee there is no pensions benefit in kind charge providing they fulfil the conditions below.

  • If the benefit is provided on or in the scheme’s premises the only condition is that any use of the asset for private purposes by the member is not significant.

‘Private purposes’ means

* use that is not use in performing the duties of the employee’s employment or duties of the scheme administrator or as a trustee
* use that is not at the same time both use in performing the duties of an employee’s employment or duties of the scheme administrator or trustee and no other use.
  • If the benefit is provided elsewhere,

    • its sole purpose is to enable the employee to perform the duties of their employment or to carry out the duties of the scheme administrator, and
    • the asset provided is not an excluded asset (motor vehicle, boat or aircraft).

The reason for these exemptions is that HMRC do not always want to tax a member - for example when using a computer owned by the scheme to write a personal letter.

The primary purpose of the asset must be as a scheme investment or used for scheme administration and any personal benefit must be incidental to that purpose in the circumstances set out above.

If an asset is provided generally in other circumstances or is one of the excluded assets, the benefit will be calculated in the usual way regardless of whether the member’s personal use is significant or not.