RPSM04103010 - Technical Pages: Taxation: Scheme investments: Exemption from income tax

Exemption from income tax - normal rule

[s186]

Income derived from investments or deposits held for the purposes of a registered pension scheme is exempt from income tax. However, there is an exception to this normal rule in relation to income derived from investments or deposits held by a registered pension scheme as a member of a property investment LLP.

Income from a trading activity undertaken by a registered pension scheme is not investment income and so does not qualify for this tax exemption.

Stock lending fees and income derived from futures and option contracts might normally be considered trading income. However, subject to special rules, such income in relation to registered pension schemes can qualify for tax relief. See RPSM04103040 and RPSM04103050 for more information.

Underwriting commissions, to the extent that they are applied for the purposes of the scheme and would otherwise be chargeable under Case VI of Schedule D are also exempt from income tax. There is an exception to this normal rule for tax exemptions in relation to property investment LLPs - see RPSM04103060.

Glossary ( RPSM20000000)