TSEM5360 - Trusts for particular purposes: employment-related trusts: retirement benefits: ICTA88/S615 schemes - introduction

Where an unapproved retirement benefits scheme meets certain requirements in S615 ICTA 1988:

• the trust is exempt to an extent from income tax and capital gains tax
• the trustees may pay annuities free of tax
• employees may receive sums tax free

but income arising in the UK to UK resident trustees remains taxable.

No new S615 schemes can be established after 5 April 2017. If an existing scheme receives contributions from 6 April 2017, that part of the fund will not be treated as having S615 status.

Whether a scheme meets S615 conditions should be considered by Pension Scheme Services.

Such trusts will be dealt with by BT & C Trusts under normal SA procedures.