Part 10: Approval of plans
3188.It was mentioned, in the overview to the explanatory notes for this Schedule, that the contents of this Schedule could be divided into three categories. Parts 2 to 9 of this Schedule deal with the first category: the requirements that must be met before a SIP may be “approved” for the purposes of the SIP code. This Part deals with the second category: procedural matters relating to the obtaining of approval and the withdrawal of approval. In doing so, this Part brings together material in Parts 1 and 13 of Schedule 8.
Paragraph 81: Application for approval
3189.This paragraph deals with the mechanics of the application for approval of a SIP. The paragraph derives from paragraph 4 of Schedule 8.
3190.This paragraph makes two changes to the law. The first change is in sub-paragraph (2), where it is provided that the application must be in writing. This requirement is not contained in Schedule 8, but there is such a requirement for the SAYE and CSOP schemes. The second change is in sub-paragraph (3), which is new. It provides that once the Inland Revenue have decided whether or not to approve the plan, they must give notice of their decision to the company. See Change 164 in Annex 1.
Paragraph 82: Appeal against refusal of approval
3191.This paragraph provides that a company may appeal to the Special Commissioners if the Inland Revenue refuse to approve the SIP. It derives from paragraph 5 of Schedule 8.
3192.Sub-paragraphs (3) and (4) divide the material in paragraph 5(3) of Schedule 8.
Paragraph 83: Withdrawal of approval
3193.This paragraph contains provisions relating to the withdrawal of approval of an approved SIP.
3194.The paragraph is the first of two rewriting paragraph 118 of Schedule 8. Paragraph 118 is lengthy, and has been divided for ease of comprehension. This paragraph derives from sub-paragraphs (1) and (7) of paragraph 118 and deals with the mechanics and implications of the withdrawal of approval. The withdrawal of approval depends on the occurrence of a “disqualifying event”; and paragraph 84 deals with the meaning of this expression.
3195.Sub-paragraph (2)(b) makes it clear that the “later time” must be a time specified in the notice. Sub-paragraphs (3) and (4) rewrite paragraph 118(7) of Schedule 8, providing a separate sub-paragraph for each proposition.
Paragraph 84: Disqualifying events for purposes of paragraph 83
3196.This paragraph specifies what is meant by a “disqualifying event”.
3197.The paragraph is the second of two rewriting paragraph 118 of Schedule 8. It derives from sub-paragraphs (2) to (6) of that paragraph.
3198.Sub-paragraph (1)(f) and (g) constitute a splitting of the material to be found in paragraph 118(2)(f) of Schedule 8.
3199.Sub-paragraph (6) extends the scope of the expression “key feature”. In paragraph 118 there is a definition of this expression (in sub-paragraph (3)(a)). This definition, however, applies only for the purposes of sub-paragraph (2)(b), but the expression is used again, without explanation, in sub-paragraph (6)(a)(i). The scope of this definition has been expanded so that it now applies to the whole of this paragraph. See Note 65(D) in Annex 2.
Paragraph 85: Appeal against withdrawal of approval
3200.This paragraph provides that a company may appeal to the Special Commissioners if the Inland Revenue withdraw approval of a SIP.
3201.The paragraph derives from paragraph 119 of Schedule 8. Sub-paragraphs (1) and (2) reorganise the material from that paragraph to a certain extent.
