(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)
(This text has been withheld because of exemptions in the
Freedom of Information Act 2000)
[PN17.12]
An exempt approved scheme or, by concession a scheme being
considered for exempt approval, may be a unit holder in an exempt
unit trust. These unit trusts can claim exemptions from capital
gains tax under section 100 Taxation of Chargeable Gains Act 1992
if all unit holders are wholly exempt from capital gains tax or
corporation tax.
A unit holder who no longer holds that exemption is required
to sell its units. Distributions are treated as annual payments for
income tax purposes and the appropriate income tax relief must be
claimed by the unit holders themselves. Operational Support Section
deals with applications to invest in the trust’s units. (The
procedures for dealing with these arrangements are dealt with in
PSI22.4.47-49.)
