(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)
[PN17.2]
The reference in section 597 to a scheme “being
considered for approval” covers any scheme from the date when
the application for approval is made under section 604 to the date
it is finally approved. All pensions paid during this interim
period are therefore taxable under PAYE. This is so even if the
scheme is not in the end approved. In such a case section 597
applies until the application is withdrawn or refused, or it
appears to us to have been abandoned (see PSI22.3.56-57) and the
applicant has been notified accordingly.
