CTM41050 - Particular bodies: retirement benefits schemes

If the trustees of a retirement benefits scheme, approved or not, are a company, the profits accrue to the company in a fiduciary capacity. So ICTA88/S8 (2) says they are not within the charge to CT. However, IT and CGT should be charged on any income or chargeable gains which are not exempt.

Refer any claim that a retirement benefits scheme, or its trustees, should be liable for CT to Audit & Pension Scheme Services.

ICTA88/SCH16 does not apply to payments made or income received if it is held in trust. If the trustee of a retirement benefits scheme is a limited company, the payments which the company makes out of the trust fund in its capacity as trustee, and the taxed income it receives, are dealt with in the usual way for IT and are excluded from Schedule 16 accounting.

How to decide whether a company is close if shares are held by the trustees of an approved retirement benefits scheme is covered in CTM60290.