PSI5.3.25 - Contributions By Employers: Special Contributions - Special Contributions Paid on Redundancy

(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)

(This text has been withheld because of exemptions in the Freedom of Information Act 2000)

Advice is occasionally sought by an Inspector where an employer makes arrangements by which a special contribution is paid into an approved pension scheme for an employee who is about to become redundant. Provided the contribution is actuarially justified and provided benefits are within acceptable Revenue limits, the position unobjectionable. You should draw the Inspector's attention to Statement of Practice 2/81 in these circumstances and explain that the position is acceptable provided the payment falls within the terms of that Statement.