BIM46001 - Specific deductions: registered pension schemes: introduction

This guidance outlines when a contribution to a registered pension scheme by an employer or former employer or another party is allowable as a deduction in computing their trading profits for tax purposes. It applies to accounting periods ending on or after 6 April 2006.

Employer for this purpose includes a ‘sponsoring employer’ of a multi-employer or group pension scheme. Most multi-employer schemes will have the majority or all group members as participating sponsoring employers. Further guidance on contributions by sponsoring employers to multi-employer schemes is at BIM46070 and BIM46075.

Guidance on contributions to registered pension schemes by third parties (that is other than by an employer, former employer or sponsoring employer) is at BIM46070

For contributions made by employers, former employers and third parties who are not carrying on a trade, guidance on deductions for management expenses is at CTM08340.

Guidance on other aspects of relief for contributions to registered pension schemes (including detailed guidance on spreading) is in the Registered Pension Schemes Manual at RPSM05400000 onwards.