PSI19.1.1 - Withdrawal of Approval: General - General

(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 section deals with the occasions when we may wish to withdraw approval from a scheme or cancel exempt approval. It also covers the circumstances in which approval lapses automatically.

Section 591B(1) ICTA 1988 (inserted by section 36(1) Finance Act 1991) permits the withdrawal of approval if the facts about any scheme or its administration no longer justify approval. In addition if any alteration is made to an approved scheme its approval automatically lapses unless:

1. the alteration has the Board’s approval (section 591 B(2)(a) ICTA 1988), or
2. the scheme is of a class and the alteration is of a type as specified in regulations as not requiring to be submitted to us for approval (section 591B(2)(b) ICTA 1988).

Although in relation to a., the suggestion is that the loss of approval following an unapproved alteration is automatic, it is our practice where the alteration is unacceptable and remains uncorrected to issue a letter formally notifying those concerned (practitioners, trustees and Inspector of Taxes) that approval has lapsed.