ESM3164 - How to work out the
deemed payment: Step Five
Paragraph 7 Schedule 12 Finance Act 2000/Section 54(1) ITEPA
2003
Regulation 7(1) SI 2000 No.727
Step Five allows a deduction for payments by the intermediary
for the worker’s benefit to an approved pension scheme.
No relief should be given for payments:
- to an unapproved scheme. The approved
pension scheme may be an occupational pension scheme or a personal
pension scheme (which, from 6 April 2001, may be a stakeholder
pension scheme);
- made on behalf of the worker i.e. the
worker gives the company the money to make a contribution;
- made and then refunded. For example, where
the scheme is over-funded or a contribution is made in error.
