PSI16.1.2 - Discontinuance of Schemes: General - Perpetuities

(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)

Until 1973 the winding-up provisions of most schemes needed a rule against perpetuities because of English trust law. This rule prevented trusts from going on forever. But, as explained in PSI1.3.20-21, the perpetuities legislation no longer applies to schemes approved under Chapter 1 Part XIV ICTA 1988. Provisions for discontinuance are now included in scheme documentation only because of the practical needs of scheme administrators and the Revenue.