PSI20.8.60 - Funding and Surpluses: Section 603 & Schedule 22 ICTA 1988. (Formerly Part II Schedule 12 FA 86) - Reduction of Surplus - Calculation of Effect of Proposals

(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 specified period, by the end of which the proposals must have taken effect, will vary depending on whether a contribution holiday forms part of the reduction package (see PSI20.8.65). The way in which each of the proposals will affect the relationship between the assets and liabilities will also vary for the purpose of calculating the 5% margin - "the prescribed maximum" under paragraph 3(2)(a) of Schedule 22 ICTA 1988.

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