PSI5.5.15 - Contributions by Employers: Cessation of Trading - Continuation of Schemes - Cessation of Trade but Continuation as an Investment Company

(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)