PSI19.1.21 - Withdrawal of Approval: General - Fresh Application and 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)

Once approval has been withdrawn it cannot be reinstated. It will, therefore, be necessary for the trustees to make a fresh application for approval of the scheme (or a new scheme) under section 604 ICTA 1988. As with a totally new scheme, approving afresh under section 604 limits our ability to restore approval beyond the start of the relevant tax year in which the application is made. The concession on time limits for making applications which are set out in PSI18.1.13will not apply in these circumstances. A fresh application made in the same tax year in which the original approval ceased will, if approval is granted, effectively restore continuous approval although the special (40%) tax charge described in PSI19.1.16h will still apply if the scheme falls within i. or ii. of that sub-paragraph. But otherwise there will remain an unbridgeable gap during which the scheme will have to stay unapproved, with consequential loss of tax reliefs and (if the scheme falls within i. or ii. of PSI19.1.16h) liability to the special tax charge. Follow the procedures in PSI22.4.59- 62 if a fresh application is received.