(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)
[PN17.20]
Where an employee’s contributions are repaid in his or
her lifetime (but not on death) the scheme administrator is liable
to tax under Case VI of Schedule D at a rate of 20% with effect
from 6 April 1988 (section 598 ICTA 1988). The Scheme District
calculates and assesses this tax liability and we are not normally
involved. The Inspector has detailed instructions at IM 8130 but
you may sometimes be asked for advice if the Inspector comes across
any points of particular difficulty.
