HMRC clarifies tax treatment of interest on underpaid pension arrears

 In its most recent Pension Schemes Newsletter, published on June 30, 2022, HMRC has clarified that an interest payment on pensions arrears qualifies as a “scheme administration member payment” and is thus an authorised payment under the Finance Act 2004. The interest payment is chargeable to income tax in the tax year in which it is made and should, as far as most members are concerned, fall within their available personal savings allowance