(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)
A "salaried" partner whose salary is taxed under Schedule E
can be a member of an approved scheme if he or she is an employee.
There is no legal definition of a "salaried partner" and the
distinction between a partner assessable under Schedule D and an
employee assessable under Schedule E must depend on the precise
relationships between the individual and the firm. Look at a scheme
for such partners with particular care. Ask the Inspector whether
the partner's income is in fact assessed under Schedule E and, if
so, whether the individual was formerly a partner assessed under
Schedule D (see
PSI3.2.12).
