PSI5.1.3 - Contributions by Employers: General - Tax Treatment of Contributions - Exempt Approved Schemes

(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)

[PN5.5-6]

Where the scheme is exempt approved the tax treatment of the employer's contributions is governed by sections 592(4-6) ICTA 1988 and the ordinary rules of Schedule D do not apply. The contributions automatically qualify as a deduction under Schedule D, as expenses incurred in the chargeable period in which they are paid. Where the payments are not ordinary annual contributions however, but special contributions, relief may be spread forward at our discretion - section 592(6) - (see Section 3 of this Part).

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