PSI14.2.9 - Transfer Payments: Benefits from Transfer Payments - Transferred Benefits on a Money Purchase Basis

(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)

With self-administered schemes the transfer value normally forms part of the common pool of investments. But there is normally no objection to it being invested by the trustees in a segregated fund where money purchase benefits are given. The position with small self-administered schemes is different. It is not permissible to segregate the transfer value into a separate fund, unless it is an assigned policy, because of the increased risk of an irregular termination of the scheme trusts (see the SSAS Guidance Notes).

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