IHTM17122 - IHT charges on pension schemes as settled property: unapproved schemes

IHTA84/S151 provides relief (IHTM17121) for schemes approved (IHTM17020) under the Taxes Acts but it also extends to any other ‘sponsored superannuation scheme’ as defined in ICTA88/S624 . This means a scheme

1. relating to service in particular offices or employments and
2. having for its objects or one of its objects to make provision in respect of persons serving in those offices or employments against future retirement or partial retirement, against future termination of service through death or disability or against similar matters

It follows that if the Company has paid the expenses of establishing a pension scheme within the definition in (a) and (b) above it will normally qualify as a sponsored superannuation scheme. Accordingly although an unapproved scheme it will still qualify for relief under IHTA84/S151.

Exceptionally, if the scheme is unapproved (IHTM17024) and does not qualify as a sponsored superannuation scheme, the relieving provisions of IHTA84/S151 will not apply. It follows that the normal settled property charges (IHTM04081) will arise where appropriate. The Pension Specialist in TG at IHT Edinburgh will advise on these matters.