PSI21.2.3 - Centralised Schemes: Associated
Employers - Associated by Community of Interest
-
(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)
A centralised scheme for associated employers may also be
accepted if there are sufficient links between the participating
companies to produce a permanent community of interest between
them. Some examples are where:
- there is common management in that the same
individuals form a majority on the board of directors of each
company;
- there are common shareholders even though
the pattern of shareholdings may differ. This needs to be looked at
with care but you can accept a community of interest if the same
individuals hold a majority of the issued ordinary share capital of
each company;
- staff are interchangeable or jointly
employed, and
- the companies’ operations are
interdependent, for example, one sells most of its products to the
other.
Submit the case to the Section Manager if you are not sure
whether the relationship is sufficiently close to satisfy the
“association” test.
Contact: | Date issued: | Next review:
