PSI2.1.1 - Taxation Background: General

(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)

Approval of a retirement benefits scheme is solely the responsibility of the PSO. Much of our work has a direct impact on the Tax Districts dealing with the tax liability of employers who set up retirement benefits schemes and of the employees who are the members. Examiners should therefore be aware of general taxation principles. The following paragraphs contain an outline of how the tax system works: further information is available from the Tax District Instructions held in each Section library and in Technical Support Section. Those aspects of taxation which directly affect our requirements for approval of schemes are covered in the relevant Parts of these instructions, (for example, Part 4 - employee contributions, Part 5 - employer contributions). The tax treatment of approved schemes and payments by approved schemes are dealt with in Part 17 of these instructions.