RPSM04103090 - Technical Pages: Taxation: Scheme investments: Pension fund pooling schemes

Pension Fund Pooling Schemes

Certain registered pension schemes and certain overseas pension schemes can participate in a pension fund pooling scheme (PFPS). A PFPS is an unauthorised unit trust which meets certain requirements and is treated as a transparent investment vehicle for tax purposes. This means that the participants in a PFPS are treated, as far as income tax, capital allowances and capital gains tax are concerned, as though they owned directly their share of each of the assets held by the trustees of the PFPS. There is further guidance on this and on the characteristics of a PFPS, including what investment it can make, in the Savings and Investments manual from SAIM6200.

Article 23 of The Taxation of Pension Schemes (Consequential Amendment) Order 2006 (SI 2006/745), which amends SI 1996/1585, provides for the participation in a PFPS of:

• a registered pension scheme which is an occupational pension scheme,
• a recognised overseas pension scheme (RPSM14101040),and
• a scheme which falls within 615(6) of ICTA 1988.

An application for such a scheme to participate in a PFPS should be sent to:

Pension Schemes Services
HM Revenue and Customs
FitzRoy House
Castle Meadow Road
Nottingham
NG2 1BD