A tax charge levied on registered pension schemes that make unauthorised payments or other scheme chargeable payments such as receiving income from taxable property. A scheme sanction charge is payable at a rate of 40% of the total scheme chargeable payments made in a tax year, but will be reduced by the lower of the amount of the unauthorised payments charge paid in the year and 25% of the amount of the scheme chargeable payments. The scheme administrator designated under the Finance Act 2004 is liable to pay the charge.