PSI4.2.12 - Tax Relief: Interim Stage

(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)

Where an application for exempt approval of a contributory scheme is first submitted but approval cannot be given immediately, eg, because final documentation is to follow, provisional relief for the employee contributions should be authorised as soon as possible. This may be done provided that:

1. the initial examination shows that everything is in order,
2. an irrevocable trust has been established - see PSI1.3.1et seq, and
3. we have been given a copy of the explanatory booklet or announcement to employees telling them about the scheme.

Authorisation is given by a stock letter issued by CORA which the practitioner can copy to the employer and the employer's Schedule E District to obtain provisional relief on employee contributions. This should be followed in due course by a copy of the formal approval letter to confirm entitlement to relief under section 592(7) ICTA 1988. (Provisional relief is not normally necessary for individual arrangements which can usually be approved within a short time.)