RPSM05102170 - Technical Pages: Contributions and tax relief: Employer contributions: Contributions for directors or connected to a controlling director

Contributions in respect of members who are directors who are shareholders or connected to a controlling director

Broadly, the employer’s contribution will be wholly and exclusively for the purposes of the trade if the contribution paid in respect of a controlling director or a connected employee is in line with a contribution that would have been made for an unconnected employee in a similar situation.

General guidance on employer's contributions to a registered pension scheme is set out in the Business Income Manual at BIM46000 onwards.

An inspector who is considering a review or challenge to the allowability of an employer deduction should follow the guidance at BIM46001.