PSI5.3.1 - Contributions by Employers - Special Contributions - Definition

(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)

A special contribution is any payment by an employer which is not an ordinary annual contribution (see PSI5.2.1). Special contributions are paid for various purposes such as:

1. to provide back service benefits or to augment benefits already secured,
2. to make up an actuarial deficiency (see Part 20)
3. to provide "Hancock" annuities either through an existing exempt approved scheme or independently, (see PSI5.3.15-17),
4. to increase investment income up to a guaranteed level or to ensure a guaranteed capital value,

[PN5.10]

1. for legal and other expenses of setting up and running a scheme (see PSI5.3.27-28).