(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)
[PN3.8]
We are not, as a matter of policy, prepared to exercise our
discretion to approve schemes for controlling directors or family
employees of investment companies (see
PSI3.3.8-10). Thus, a scheme
for such individuals should normally be made paid-up as at the date
on which trading ceases. However, contributions to the scheme may
be continued so that the controlling director/family employee
members can receive the maximum approvable benefits for their
service up to, and final remuneration at, the date on which trading
ceased. The maximum benefits must not exceed the amounts calculated
as though the controlling director/family employee member had left
service on the date of cessation of trading. Final remuneration
should be based on the normal definitions (see
PSI6.4.1-41) but with the date
of cessation of trading substituted for NRD.
(This text has been withheld because of exemptions in the
Freedom of Information Act 2000)
