PSI16.2.7 - Discontinuance of Schemes: Winding-Up - Winding-Up Process

(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)

[PN14.5-9]

The winding-up process requires the trustees to realise the scheme assets and collect any debts owing to it. From this money they must first pay any debts owed by the scheme, including any arrears of pension, any outstanding expenses and any loans. The balance remaining is then available to provide benefits for the members and their dependants. While we expect these benefits to be secured in accordance with the approved rules, we do not need to know details of the benefits or how they have been secured. We are more concerned that we are notified of any payments made on winding-up which give rise to tax liability under sections 598 to 601 ICTA 1988, which includes, of course, liability on disposal of any surplus funds (see PSI16.2.20-29).

Contact: | Date issued: | Next review: