(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)
(This text has been withheld because of exemptions in the
Freedom of Information Act 2000)
Section 590(2)(a) ICTA 88 requires that a retirement benefits
scheme be "bona fide established for the sole purpose of providing
relevant benefits". It has been argued that the purpose of a scheme
is determined solely by reference to its documentation and that the
Inland Revenue cannot question other aspects, such as the
scheme’s investments. The Board’s Solicitor disagrees
and has advised that where something is to be done “bona
fide”, the requirement must be genuinely met and not just met
on paper. It is up to the trustees of a scheme to prove, where
necessary, that the scheme is genuine and has the provision of
relevant benefits as its sole purpose.
