| [Schedule 33 paragraph 2] |
Schedule 33 provides for employers to be relieved from tax under
section 196 on their "relevant migrant member contributions" as if
they were contributions to a
registeredpension scheme (see
RPSM05101210). Relevant migrant
member contributions are those made to a
qualifying overseas pension scheme (see
RPSM13101060) in respect of an
employee who is a
relevant migrant member of the scheme (see
RPSM13101040). The scheme has to be
a qualifying overseas pension scheme when the contribution is made
for relief to apply.
Contributions are allowed as deductions under section 196 to
the extent that they are paid and would be allowable under the
normal rules of Schedule D or under section 75 or 76 ICTA (See
RPSM05102010). Schedule 33 applies
section 200 to such contributions as if the reference there to
contributions under a registered pension scheme included relevant
migrant member contributions (see
RPSM05102010).
If contributions made by an employer after 5 April 2006 do
not qualify as relevant migrant member contributions they may
receive transitional relief or double taxation agreement relief
instead in certain circumstances (see
RPSM13101100 and
RPSM13101500). If such relief is not
available then an employer may be able to claim a deduction for
contributions to an overseas scheme in accordance with the
provisions of Schedule 24 to the Finance Act 2003. The effect of
this legislation is to provide a business deduction for the
contribution when the scheme provides benefits. Guidance on the
operation of Schedule 24 FA03 can be found in the Business Income
Manual at BIM 44575 onwards.
| Glossary ( RPSM20000000) |
