PSI16.1.8 - Discontinuance of Schemes: General - Continuation of Scheme After Liquidation of the Employer

(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)

A proposal to let the scheme continue in paid-up form after the employer is liquidated or otherwise goes out of business needs to be looked at with care. No problems arise if the business, and pension scheme, is taken over by a new employer. Under the scheme documents the successor will assume the duties and responsibilities of its predecessor. You should however ensure that the process is properly documented and in binding form. This is normally done by a deed of succession. You may also need to consider whether continuous service is acceptable in these circumstances and you should consider any such request in accordance with the guidance set out in PSI6.5.71-73.

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