In-specie contributions are not allowed. The legislation only
permits monetary contributions. However, it is possible for an
employer to agree to pay a monetary contribution and then to settle
this debt by way of a transfer of an asset or assets.
For example, if an employer wishes to pay a contribution he
cannot do this by merely saying 'take this asset and whatever it is
worth that is my contribution'.
There must be
If the asset market value is lower than the contribution debt
the balance will be paid in cash.
If the cash contribution debt is not created, then the
transaction is the acquisition of an asset by the scheme not a
contribution.
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| Glossary ( RPSM20000000) |