(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)
You may come across schemes where "relevant benefits" are a
minor feature in a scheme whose main purpose is to provide benefits
in circumstances other than retirement (examples include death in
service benefits in a sick pay scheme or continuance of the sick
pay up to normal retirement date in circumstances where the
employee has retired early on incapacity grounds and is drawing a
pension from the approved scheme. In this situation the sick pay is
regarded as a pension and therefore a relevant benefit). Such a
fringe scheme, although not intended to be one, is, nevertheless a
"retirement benefits scheme" because it provides relevant benefits.
However, since the provision of relevant benefits is not its
sole purpose it is not approvable under Chapter I,
Part XIV ICTA 88. It therefore comes within the legislation on
top-up schemes (see
PSI1.2.3-4). In the unlikely event that
such a scheme is presented to this Office or you come across an
existing one you should refer it to the relevant Inspector of Taxes
explaining that since it is not approvable by this Office, it needs
to be considered as a non-approved top-up scheme. The Inspector's
attention should be drawn to the instructions referred to in
PSI1 .2.4.
