EIM15032 - Non-approved and employer-financed retirement benefits schemes: periods when a scheme is not approved or registered

a retirement benefits scheme may be outside the non- approved scheme rules from the outset. For example it may be approved by Audit & Pension Scheme Services (APSS) before any contribution or payment is made, or it may be a statutory scheme (see EIM15030).

The situation may be less clear. For example:

• an application for approval of a scheme may be under consideration by Audit & Pension Schemes Services (APSS) when a payment is made. Only those lump sums that APSS has approved before or after payment, or that are approved as small payments under EIM15172, are excluded from charge. Do not treat a scheme as non- approved before APSS has made a decision.
• a scheme may be approved with effect from a date after a payment has been made to the scheme. For example, an employer makes a contribution on 1 January 2003 but approval, when given, is backdated only to 1 July 2003. The contribution is chargeable under Section 386 ITEPA 2003 (see EIM15015).
• a scheme's approval may be withdrawn. Payments outside the period covered by approval are treated as to or from a non-approved scheme.

Note that if for any reason an employer's contribution to a non-approved scheme is not assessed on the employee under Section 386 ITEPA 2003, any lump sum from the scheme that is derived from that contribution can be assessed under Section 394 ITEPA 2003 when paid (see EIM15015).

For periods after 5 April 2006, a registered scheme may be de-registered. From that date, it will be an employer-financed retirement benefits scheme (see EIM15010).