PSI17.1.34 - Tax Treatment of Approved Schemes and Payments by Approved Schemes: Tax Treatment of Approved Schemes - Self-Administered

(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 two basic categories of self-administered scheme for examination purposes:

[PN20.1]

1. those which are subject to small self-administered scheme treatment (normally those with less than 12 members), and
2. others.

The investment practice of small self-administered schemes needs to be looked at more critically because of the close relationship between employer, trustees and scheme members. Their investments are sometimes unacceptable to us because of related tax avoidance or the provision of non-relevant benefits for the members. Detailed instructions about these schemes are given in a separate volume although the contents of this Section can also be relevant. Other self-administered schemes do not usually cause the same problems. They generally cater for arm’s length employees and the risk of the schemes becoming involved in tax avoidance or providing non- relevant benefits is not as great.

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