PSI4.1.6 - General: Tax Treatment (General)

(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)

[Pn4.2]

Almost all the schemes with which we deal are, or will be, exempt approved schemes for the purposes of section 592 ICTA 88. An employee's contribution will therefore be allowed as a deduction under Schedule E as an expense incurred in the year of assessment in which it is paid (section 592(7)). The maximum amount of relief will normally be limited to 15% of the employee's remuneration for that year from the employment being pensioned subject, where necessary, to the permitted maximum. This is dealt with in more detail in PSI4.2.1et seq.

An employee's contribution to a non-exempt approved scheme is not eligible for tax relief except where the circumstances set out in PSI4.2.19 apply.

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