(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)
Reflecting the social desirability of encouraging provision
for retirement, Chapter I, Part XIV ICTA 88 (formerly Finance Act
1970) as amended by section 75 and Schedule 6 of the Finance Act
1989 and subsequent Finance Acts, gives generous tax reliefs to
retirement benefits schemes which qualify for approval. For most
schemes this means tax-free investment income, exemption from
capital gains tax on any gain realised from the disposal of assets
and automatic relief on employers' and employees' contributions.
Controls are therefore needed to ensure that these tax advantages
are used only for their intended purpose. Some of these conditions,
which form the subject of this Part of the instructions, relate to
a scheme's constitution and administration.
