(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)
[PN17.11]
Exempt approved schemes may pool their investments in a
common investment fund (CIF). This is a central fund managed by
investment experts into which existing assets are put when the fund
is set up and into which the employers’ and employees’
regular contributions are paid. It is not itself an exempt approved
scheme and does not qualify for the tax reliefs available to the
participating schemes. Its documentation should make clear that the
participating schemes remain entitled to their share of the
underlying assets (which should always be identifiable) and the
income paid on those assets. There is no requirement that all of
the assets of a scheme must be included in the CIF.
The main advantage of such funds is the simplified
administration of the investments. This advantage would, however,
be lost if each participating scheme had to submit its own
repayment claims. But if the fund is set up satisfactorily it is
usually possible to arrange for joint repayment claims to be made
on behalf of the participating schemes.
