RPSM02303010 - Scheme administrator pages: Registering a pension scheme with HMRC: Why register a pension scheme? What are the advantages of registration?

What are the advantages of registration?

A registered pension scheme can qualify for tax privileges.

Tax relief is given on the following payments to a registered pension scheme

• contributions made by members
• contributions made by the employer of a member
• payments made to the scheme by others for the benefit of a member.

A registered pension scheme also qualifies for relief from tax on

• investment income
• investment gains.

In addition, there is exemption from income tax on

• certain lump sums paid to scheme members
• certain lump sums paid on the death of a member.