PSI2.2.6 - Taxation Background: Tax Avoidance - Investments

(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)

Insured schemes are unlikely to be involved in tax avoidance because their funds are invested in insurance policies. Our prime concern is that the policy is suitable for the benefits being provided (see Part 20). Self-administered schemes are different since the trustees (and indirectly the employer) control the investments. Most avoidance problems arise with small self-administered schemes and these are dealt with in the SSAS Guidance Notes. Problems on large self-administered schemes can result from doubtful transactions in securities.