PSI4.3.14 - Maximum Contributions: Scheme Rules - Surplus AVC Regulations

(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)

The Retirement Benefits Schemes (Restriction on Discretion to Approve) (Additional Voluntary Contributions) Regulations 1993 [SI 1993 No 3016] came into force on 27 December 1993. The regulations restrict the discretionary approval powers that are available under section 591 ICTA 1988 to the effect that schemes (other than simplified defined contribution schemes and schemes only providing death benefits) cannot be approved on or after 27 December 1993 if the scheme documentation does not have provisions that give effect to the regulations. The following wording, as used in standard documentation, can be accepted as meeting the requirements of the regulations:

“The administrator of the scheme shall comply with the requirements of Regulation 5 of the Retirement Benefits Schemes (Restriction on Discretion to Approve) (Additional Voluntary Contributions) Regulations 1993 [SI 1993 No 3016] and where the scheme is the leading scheme in relation a member, with the requirements of regulation 6 of those Regulations so far as they concern main schemes. If these Regulations are amended or replaced by any other Regulations then this clause will have effect as if it had been amended or replaced accordingly.”

Contact: | Date issued: | Next review: