(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)
The tax charge of 35% is designed to recoup the excessive tax
reliefs previously allowed to both the scheme and its contributors.
The legislation is worded in such a way that the charge applies in
general to all payments to an employer from funds which are or have
been held for the purposes of an exempt approved scheme - not just
payments made out of surplus funds - and to any transfer of assets
or money's worth to the employer. (See
PSI20.7.12-14).
