PSI4.4.4 - Free Standing AVC Schemes (FSAVCSs): Scheme Rules

(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)

Despite being handled by PP Section, FSAVCSs belong to the occupational pensions tax regime under Chapter I, Part XIV, ICTA 1988. Contributions (and benefits emerging) must therefore be aggregated with those under all approved schemes of the employer for the purposes of Revenue limits and, apart from simplified defined contribution schemes (SDCS), the necessary restrictions must be covered in the employer's scheme rules. The specimen wording at PSI4.3.4covers the position adequately by requiring aggregation under "this and any relevant scheme providing benefits by virtue of service". If the employer's scheme is a SDCS, refer to paragraph 4.4 of the FSAVC Supplement to IR12(1979). (See also PSI4.4.7-4.4.8.)

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