(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)
[PN5.1]
It is a condition of approval under Chapter I, Part XIV ICTA
1988 that the employer must contribute to the scheme. It is a
"prescribed condition" under section 590(2) on two separate counts:
section 590(2)(d) simply requires that the employer is a
contributor to the scheme. In addition, the benefits provided by
the scheme will not be "relevant benefits" for the purpose of
section 590(2)(a) unless they are "given" in respect of service as
an employee - see the definition of "relevant benefits" in section
612. There is one exception to this however; with effect from 26
October 1987, we have been prepared to approve schemes for
employees to which their employers do not contribute - Free
Standing Additional Voluntary Contribution Schemes (FSAVCSs) -
section 591(2)(h). The employee must, however, be simultaneously
accruing benefits under an approved or relevant statutory scheme to
which the employer contributes (see
PSI4.4.2).
