PSI18.1.15 - Application for Approval and Information Provisions: Application for Approval - Date of Approval - Discretionary Schemes

(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)

Where a discretionary scheme is set up by interim deed the validity of the trusts purported to be established is questionable because the scheme does not of itself confer enforceable rights on any beneficiary (see PSI1.3.33). In such a case exempt approval cannot pre-date the establishment of a valid trust, which will be on the latest of the following dates:

1. the date of commencement of the scheme,
2. the date on which the trust instrument was executed,
3. the date when the first contribution was paid to the trustees (or in an insured scheme, the date the premium was paid to the Life Office), and
4. the date when the first employee was notified of his or her membership and of his or her rights under the scheme (see however PSI1.3.34 with regard to director members).