PSI3.2.6 - Membership of Schemes: Proprietors, Partners and Other Persons Assessed under Schedule D - Proprietors and Partners

(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)

[PN3.5]

A proprietor or a partner assessed under Schedule D cannot join or remain a member of an approved scheme since such an individual is not an employee in fact or in law. Most scheme eligibility rules limit membership to employees of the employer, which automatically excludes proprietors and partners from membership (see also PSI3.2.7). A partnership or other unincorporated business can of course set up an approval scheme for its ordinary employees. But if you suspect that a scheme set up by such an employer includes a proprietor or partner - for example from the names on the firm's letter heading - form PS254 should be sent to the practitioner (see PSI22.3.11-13).

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