RPSM07300140 - Scheme Administrator Pages: Investments: What investments may lead to other tax charges?

What investments may lead to other tax charges?

Generally, investments made by registered pension schemes are exempt from tax on income or gains apart from:

Limited Liability Partnerships

These exemptions do not apply to income from investments or deposits held as a member of a property investment Limited Liability Partnership. Under The Limited Liability Partnership Act 2000, these are partnerships in which the liability of at least one of the partners for the debts and obligations of the firm is restricted to a set amount. For further information see the Business Income manual at BIM72110.

Trading

There is no restriction on a registered pension scheme entering into trading activities. However, the scheme will be liable to pay tax on any income from a trading activity.

Schemes that have taxable income must declare the income on a Self-Assessment Tax Return.

In a trust based scheme this will be the liability of the trustees. In non-trust based schemes the liability will depend on who has beneficial ownership of the income.