PSI20.7.1 - Funding and Surpluses: Sections 601-2 ICTA 1988 - 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)

Section 601(1) ICTA 1988 imposes liability to tax on any payment to the employer from funds which have been or are held for the purposes of a scheme which is or has been exempt approved at any time. It covers therefore not only payments for controlling surpluses referred to in Part 20 Section 6 ( PSI20.6.1) but also those made in other circumstances. Section 601(6) extends liability to any transfer of assets to the employer or transfer of moneys worth (see PSI20.7.12-14).

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