PSI3.3.10 - Membership of Schemes: Directors -
Controlling Directors of Investment Companies - Reason for
Refusal
-
(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)
Our main objections to schemes for controlling directors and
members of controlling families of investment companies are:
- a pension should be a replacement for
income foregone because a person can no longer continue his or her
occupation. This need for income replacement does not normally
apply to investment income. Also the director's remuneration from
such a company is more a return on capital invested than a payment
for services.
- the terms of section 644 ICTA 88 prevent a
"controlling director" of an investment company from taking out a
personal pension relating to the remuneration the director receives
from that source. It is therefore consistent to take a similar line
with occupational pension schemes.
Contact: | Date issued: | Next review:
