(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)
[PN2.2]
If the practitioner asks this Office to exercise discretion
on behalf of the Board to direct that the scheme is "exempt
approved" and we agree to this, the employer's contribution will be
allowed automatically under section 592. Before agreeing to this
course of action we must therefore be, satisfied that the Inspector
would otherwise have allowed the deduction under the normal rules
of Schedule D as an expense incurred wholly and exclusively for the
purposes of the trade (see PSI22.3.81). Several tax cases may have
a bearing upon the Inspector's decision, ie:-
- Atherton v British Insulated and Helsby Cables Limited (10
TC 155)
- CIR v Anglo Brewing Company Limited (12 TC 803)
- James Snook and Co. Limited v Blasdale (33 TC 244)
- Samuel Dracup v Dakin (37 TC 377)
(All are described briefly at
PSI5.4.6)
