EIM15030 - Non-approved and employer-financed retirement benefits schemes: identification

Section 387(2) and Section 393A ITEPA 2003

Non-approved schemes

(see EIM15020)

A retirement benefits scheme will be non-approved unless it is within one of the three categories specified in Section 387(2) ITEPA 2003. These are:

  • a scheme approved by Audit & Pension Schemes Services (now Pension Schemes Services) ( Note: see EIM15032 for guidance on the treatment of periods when a scheme is not approved)
  • a relevant statutory scheme. Public sector pension schemes are usually within this category. Pension Schemes Services (PSS) can advise if a scheme is a statutory scheme but broadly it is a scheme either:
  • set up under an enactment where the particulars are set out in that enactment or in regulations made under it, or
  • a scheme approved by a Minister or Government department
  • a scheme set up by a Government outside the UK for the benefit of its employees.

It follows that most schemes set up and administered outside the UK will be classified as non- approved (see EIM15060 for further guidance concerning such schemes).

Employer-financed schemes (see EIM15020)

A retirement benefits scheme will be employer-financed unless it is registered by Pension Schemes Services (PSS)