RPSM05300050 - Scheme Administrator Pages: Contributions and tax relief: Member contributions - overview: In what form can contributions be made

In what form can contributions be made?

As well as deductions from the member’s salary, you may accept payments in the form of cheques, bank or building society drafts, direct debits, standing orders and debit/credit cards.

It may also be possible for you to accept an asset as a contribution. There are specific rules on the transfer of certain shares by a member. These shares must be shares,

• which the member acquired on exercising a right under a SAYE option scheme (as defined in section 516 ITEPA 2003) or
• which were appropriated to the member under the provisions of a share incentive plan (as defined by section 488 ITEPA 2003).

See RPSM05101040 for further details.

For other types of assets, in-specie contributions in their strictest sense are not allowed. The legislation is framed in such a way that means that the payments have to be expressed as cash sums. But what is allowed is for an individual to agree to pay a monetary contribution and then to settle this debt by way of a transfer of asset(s).

See RPSM05101045 for further details.