PSI5.5.14 - Contributions By Employers: Cessation of Trading - Continuation of Schemes

(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)

The employer will sometimes want to continue the scheme despite the cessation of trade. These cases usually involve benefits for controlling directors. Because the scheme is continuing and premiums are still being paid the Life Office may not know that trading has ceased. An enquiry from the Tax District about the tax treatment of a contribution paid after trading stopped is often the first indication. Find out whether the company started a new trade after its former business ceased. If so, the scheme may continue. If a new trade has not started and PSI5.5.15-16 do not apply the case should be referred to the Assistant Controller to decide whether approval should continue.