PSI14.1.31 - Transfer Payments: General - Transfers In Specie - From SSAS to PPS

(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)

Only assets within the range listed at the Schedule of the Personal Pension Schemes (Restriction on Discretion to Approve)(Permitted Investments) Regulations 2001 (SI 2001/117) may be transferred as an asset (sometimes called transferring ‘in specie’) to a PPS. Even within that range a transfer will not be acceptable if the asset is:-

21. part of a tax avoidance scheme; or
22. one which we said should be disposed of as unacceptable

Because of the risk of excessive transfers to PPs where controlling directors or high earners are concerned, transferring schemes have to provide a certificate confirming that the value of the transfer does not exceed the value of benefits calculated by reference to The Personal Pension Schemes (Transfer Payments) Regulations 2001(SI 2001/119).

In such cases therefore, any commercial property being transferred in specie must be professionally valued shortly before transfer. This will apply where any part of the transfer relates to an employment wherein the member is or has been at any time in the 10 years prior to the proposed date of transfer, a controlling director. It also applies to any member whose earnings for any tax year in the 6 years prior to the proposed date of transfer exceeded the current permitted maximum (see PSI6.4.7-8) and whose age at the proposed transfer date is 45 or over. A copy of the valuation should be requested by the SSAS Examiner and any query resolved as appropriate.