PSI19.1.15 - Withdrawal of Approval: General - Automatic Cessation of Approval

(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)

PSI19.1.1describes one situation in which approval lapses automatically viz following an unapprovable amendment. There is another situation in which loss of approval is automatic. This is where schemes fail to comply with regulations made for the purposes of section 591 ICTA 1988. Section 591A provides that schemes have 3 years from the date that the relevant section 591 regulations come into force to amend their rules to accord with the regulations. If they do not amend their rules during that time they will automatically cease to be approved at the end of the 3 year period. It is our practice to warn such schemes before the effective date that approval is in jeopardy, and to notify those concerned once it has lapsed.

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