PSI13.4.4 - Withdrawal from Service: Deferred Benefits under Individual Policies (Buy-Out Policies) - Assignment of Scheme Policies to Employee

(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)

[PN10.37]

Before 1 July 1994, buy-out contracts normally had to be in a form approved for the purposes of sections 431(4)(d) and 591 (2)(g). Approval under the latter section enabled the contracts to be used for this purpose while the former section provided for pension business treatment of the investment underlying the contracts (see PSI17.1.7). This "prior approval" offended EC regulations and with effect from 1 July 1994 both of those sections were amended (by sections 107 and 143 respectively of the Finance Act 1994) so that such contracts no longer require specific approval.

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