PSI3.2.4 - Membership of Schemes: Proprietors, Partners and Other Persons Assessed under Schedule D - Employees Assessed under Schedule D

(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)

Employees assessed under Schedule D may sometimes be entitled, under a scheme's eligibility rule, to become members of a scheme which is already approved. We cannot stop them from joining the scheme, nor insist that they withdraw from it if they have already joined. It is also not appropriate to withdraw approval from the scheme itself since this would penalise other "innocent" members. The solution in such a case is for the people concerned to be assessed under Schedule E instead of the concessionary Schedule D basis. If you are asked whether such employees may join a scheme, or if you discover that such employees are members of a scheme, refer the case to the Divisional Manager who will consult Personal Tax Division about changing the basis of assessment. (See also PSI3.2.5which relates to deep sea divers assessable under Schedule D).

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