(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]
(This text has been withheld because of exemptions in the
Freedom of Information Act 2000)
From 6 April 1987, relief on employee contributions is
restricted by legislation to 15% of remuneration for the year of
assessment in which the contributions are paid, or such higher
percentage as the Board may in a particular case prescribe (section
592(7) and (8) ICTA 1988). The prescription of a higher percentage
will be appropriate only where there are exceptional and compelling
reasons. In particular, the payment of excessive AVCs will
not justify higher relief. Prescribing will be
done at Divisional Manager level (or above) on behalf of the Board
of Inland Revenue. For this reason, you should avoid giving any
impression that a higher level of relief will be forthcoming.
The full facts should be ascertained and referred to the
Section Manager. If it is considered that adherence to the strict
15% limit would be unfair in the circumstances of the case, refer
to the Divisional Manager for a formal prescription on behalf of
the Board. SF70/25(2) contains samples of the wording and format to
be used.
