Measure
The authorised surplus payments charge will be reduced from 35% to 25%.
This charge applies when a defined benefit pension scheme is in surplus, and the trustees agree to pay some or all of that surplus back to the employer.
The reduction in rate will apply to surpluses repaid to the employer on or after 6 April 2024.
While this measure will reduce the tax cost to employers in accessing these surpluses, employers should be aware that any repayment of a surplus to them will need to be agreed with scheme trustees. There may also be other barriers to consider.