(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)
[PN19.4]
Where an insured scheme ceases to be exempt approved, the
premiums already paid during the exempt period may remain in
pension business (see
PSI17.1.7-9) insofar as they
provide approvable benefits. But the balance of those premiums
which relate to unapprovable benefits must be transferred to
general annuity business or to the remainder of the life fund, as
the nature of the policy may require. Later premiums are treated as
non-exempt business.
