(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)
A controlling director (see
PSI3.3.5) has more scope than
an ordinary employee to choose an NRD which is unrealistically low.
For a controlling director subject to the pre-Finance Act 1989
basis for late retirement (see
PSI9.1.1) this could result in
tax- free interest additions to the lump sum for the period between
NRD and
actual retirement. (
PSI9.2.14-19 set out the
conditions we impose where a controlling director's retirement is
deferred. (See
PSI6.3.32 where a normal
retirement age lower than 60 is claimed.)
