PSI17.1.10 - Tax Treatment of Approved Schemes and Payments by Approved Schemes: Tax Treatment of Approved Schemes - Additional Voluntary Contribution Policy

(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)

[PN17.16]

We do not regard the correspondence requirements as prejudiced by the inclusion in a policy securing only AVC benefits, of a provision for the policy benefits to be paid to the scheme administrator as a lump sum to secure the payment of additional pension under the scheme in circumstances where:

1. the policy proceeds are trivial (not more than £2,500), and
2. some or all of the pension benefits payable to the member in respect of the employment are paid by the administrator out of scheme assets.

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