PSI16.1.10 - Discontinuance of Schemes: General - Continuation of Scheme After Liquidation of the Employer - Revenue Considerations

(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)

There are several reasons why a scheme should normally be wound-up when the employer goes into liquidation but our main concern is that any surplus arising under the scheme should be determined so that it can be paid to the employer and taxed (see Part 20). If the scheme is not wound-up and a surplus eventually arises there may be practical difficulties in taxing the refund to the employer. For example, it may be difficult to revive the company if the sole reason is to receive the payment of a surplus.

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