(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)
With small self-administered schemes the actuary often
recommends payment of a particular amount of contribution. This
recommendation does not fix the OAC unless the employer actually
pays the recommended amount each year. For example:
An actuary recommends payment of regular contributions of £40,000. But the actual contributions paid are:
| Year 1 | £100,000 |
| Year 2 | £100,000 |
| Year 3 | £100,000 |
| Year 4 | £700,000 |
The aggregate contributions are the same as if the company had followed the actuary's advice throughout the period. Nevertheless the payment pattern shows that the OAC is £100,000. The balance of the year 4 contribution, £600,000, should be treated as a special contribution and spread for tax relief purposes accordingly (see Section 3 of this Part).
