(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)
Where schemes are at the interim stage follow the
instructions at
PSI5.2.20, but note that the amount of
contribution on which tax may be stood over must not exceed the
final relief likely to be allowed in that year. If the relief is to
be spread over a number of years, only the due proportion of tax
for each year may be stood over.
An employer sets up a scheme and pays a single premium of £500,000. Relief for this payment is to be spread over 2 years. If asked about the tax treatment during the interim stage advise the Inspector to allow tax to remain in abeyance on £250,000 for each year.
