(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)
The legislation described above, combined with recognition of
the social desirability of pension schemes and awareness of the
value of the tax reliefs available, had a major impact on the shape
of pension funds. Thus, before the second World War there were
comparatively few pension funds and most were self-administered.
Until 1931, provision for widows was generally made under a
separate fund. Finance Act 1947 led to numerous schemes being
arranged with Life Offices, even though expenses relief was not
available on employees' contributions. Following the Finance Act
1956 many of these schemes converted to section 208 approved funds.
But, to give employees a commutation option, it became common
during the early 1960s for insured section 208 funds to combine
with section 222 schemes. The fund provided three-quarters of the
total benefit and the scheme the remaining (and commutable)
one-quarter.
