EIM15084 - Employer-financed retirement benefits schemes: Extra-Statutory Concession A10: application to superannuation funds

Section 615(6) ICTA 1988

There can be funds that are not strictly overseas retirement benefits schemes because they are administered within the UK. However, they may have as their principal purpose the provision of benefits for employees whose service in employment is carried out wholly or mainly overseas.

The responsibility for such schemes lies with Pension Schemes Services (PSS) who can decide whether or not Section 615(6) ICTA 1988 applies (in which case the scheme is not an EFRBS - see EIM15050).

The position up to 6 April 2011 was that if a scheme were clearly within Section 615(6) ICTA 1988 on the basis of a decision already given by Pension Schemes Services (PSS) and a claim for concessionary treatment under Extra-Statutory Concession A10 were received, then further reference to PSS was not required. The treatment of any lump sum received would follow that outlined above in EIM15083 (penultimate paragraph of the concession).

An announcement was made on 31 March 2011 regarding how this relief would work following the introduction of new rules on employment income provided through third parties. The announcement is available on the HMRC website at: www.hmrc.gov.uk/budget-updates/march2011/pensions-esc-a10a11.pdf 

The announcement explains how the new rules make just and reasonable apportionments and when the older A10 rules will continue to be applied. It also explains that regulations will be made, following which this guidance will be further revised.