PSI5.1.30 - Contributions by Employers: General - Contributions in Specie - Transfer of Shares

(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)

Contributions are normally paid in money but this is not essential. Stocks and shares transferred to the scheme trustees by the employer can also be treated as an employer's contribution as long as the transfer is unconditional. Where the shares are quoted on the Stock Exchange their value is normally taken as "one-quarter up" on the Stock Exchange price on the day of transfer: for example, if the quoted price is 100-102 the value is taken as 100½. If the shares are not quoted on the Stock Exchange you can accept the value placed on them for Stamp Duty or Capital Gains Tax purposes. Ask the agents to explain the basis on which the shares have been valued and consult the Shares Valuation Division of Capital Taxes Office when a reply is received.

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