(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)
[PN17.35]
Where a surplus of an employee’s AVCs is repaid to the
employee or, to his or her personal representatives (in the event
of the employee’s death) from an exempt approved scheme or a
relevant statutory scheme, the scheme administrator is liable to
tax under Case VI of Schedule D at a rate of 32% on such amount as,
after deduction of tax at that rate, would equal the amount repaid
to the employee or the employee’s personal representatives
(section 599A ICTA 1988) (see also
PSI4.3.12).
