PSI17.1.60 - Tax Treatment of Approved Schemes
and Payments by Approved Schemes: Tax Treatment of Approved Schemes
- Repayment of Tax to Self- Administered Schemes at Interim Stage
– Indemnity Procedure - Main Criteria
-
(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)
The main criteria for its use are:
- The amounts of tax repayable must be at
least £5,000 a year. We do not regard the indemnity procedure
as practicable in small cases.
- Whether definitive documents can be
executed speedily. If the practitioner has been unreasonably slow
in preparing documentation, the withholding of relief may be a
useful means of securing progress. In any event, schemes
established from 6 April 1993, should aim to adopt definitive
documentation within a maximum period of 2 years. In these cases it
is not appropriate to agree the provisional repayment of income tax
to the trustees for a period longer than that.
- The timing and frequency of repayment
claims. If claims are submitted annually and the next one is not
due for several months the indemnity procedure may not be needed by
then. If the agents have not said how often claims are submitted
ask the Scheme District for this information.
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