(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)
In 1970 legislation was introduced to simplify the tax law
which had become increasingly complicated and cumbersome. This
legislation is mainly contained in sections 19-26 and Schedule 5
Finance Act 1970 and was commonly known as “new code”
or “Chapter II Part II” for a number of years.
Finance Act 1970 provided a unified structure for approval of
new schemes, and of existing schemes being converted, from 6 April
1970. (Transitional arrangements enabled "old code" schemes to
retain their approval up to 5 April 1980.) Finance Act 1970 left
the benefits and reliefs available to scheme members, employers and
the schemes themselves basically unaltered. Certain changes in
practice were however introduced - for example, a 2/3rd pension
could be earned after just 10 years service with an employer; and
the lump sum death in service benefits payable were generally more
restricted than before.
