(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 announcement to members about their scheme may sometimes
mention non-approvable benefits, such as long term sick pay. In
such a case ask the agents to confirm that these non- approvable
benefits are provided under a separate arrangement.
If it is desired to give non-relevant or non-approvable
benefits these may be provided by a separate non-approved top-up
scheme. Thus benefits in excess of the Revenue limits applied to
approved schemes can be provided by a non-approved top-up scheme.
Top-up schemes do not attract the substantial tax reliefs (see
PSI1.1.1) which are available to
approved schemes. The legislation has been amended so that the
existence of a non-approved scheme does not prejudice the approval
of an employer's approved schemes. For the purposes of aggregating
benefits you should therefore consider only the other approved
schemes of the employer.
