(This archived guidance relates to HMRC discretionary
practice before the 6th April 2006. For current guidance on
Registered Pension Schemes see the Registered Pension Schemes
Manual)
Before 1921, trustees of trust funds established to provide
pensions could make arrangements with the Board of Inland Revenue
to obtain tax relief on contributions paid by employers and
employees and on the investment income of the fund. Following a
recommendation of the Royal Commission on Income Tax 1920,
statutory authority was given for these reliefs in the case of
approved funds by section 32 Finance Act 1921 (later section 208
Income and Corporation Taxes Act (ICTA) 1970). This section was
extended in 1930 to cover funds providing benefits for widows,
children and dependants.
