(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)
If pension business treatment is to be available section
431(4)(b) ICTA 1988 requires that premiums must be payable under
contracts:-
[PN17.14]
(This text has been withheld because of exemptions in the
Freedom of Information Act 2000)
“entered into, for the purposes of, and made with persons having the management of, an exempt approved scheme as defined in Chapter I of Part XIV ICTA 1988 being a contract so framed that the liabilities undertaken by the insurance company under the contract correspond with liabilities against which the contract is intended to secure the scheme”.
As this statutory wording implies, it is not necessary for the policy to secure the whole of the scheme’s liabilities.
