C1C2C3C4C6C7C8C9C10Part 4Pension schemes etc

Annotations:
Modifications etc. (not altering text)
C8

Pt. 4 modified (1.7.2008) (N.I.) (with effect in accordance with reg. 1 of the amending Rule) by The Health and Social Care (Pension Scheme) Regulations (Northern Ireland) 2008 (S.R. 2008/256), regs. 1, 124(1) (with regs. 134, 258)

C10

Pt. 4 applied (21.7.2009) by Finance Act 2009 (c. 10), Sch. 35 para. 18

C5Chapter 6Schemes that are not registered pension schemes

Annotations:
Modifications etc. (not altering text)

Employer-financed retirement benefit schemes

246AF1Case where no relief for provision by an employer

1

An employer's expenses of providing relevant benefits to or in respect of a present or former employee (“the employee”) under an employer-financed retirement benefits scheme (whether or not by the making of contributions under the scheme) are not subject to relief if subsection (2) applies.

2

This subsection applies where—

a

the provision of the relevant benefits results in a reduction in the benefits payable to or in respect of the employee under a registered pension scheme, or

b

a reduction in the benefits payable to or in respect of the employee under a registered pension scheme results in the provision of the relevant benefits.

3

But if the extent to which contributions paid by the employer under the registered pension scheme in respect of the employee are subject to relief has been restricted in accordance with regulations under section 196A, the employer's expenses of providing the relevant benefits are not prevented from being subject to relief to the extent that is just and reasonable.

4

The references in this section to expenses of an employer being subject to relief are to—

a

their being deductible in computing the amount of the profits of the employer for the purposes of Part 2 of ITTOIA 2005 F2or Part 3 of CTA 2009 (trading income),

b

their being expenses of management of the employer for the purposes of F3Chapter 2 of Part 16 of CTA 2009 (expenses of management: companies with investment business), or

c

their being brought into account at Step 1 in section 76(7) of ICTA (expenses of insurance companies) in respect of the employer,

(depending on which is appropriate in relation to the employer).

5

In this section—

  • “employer-financed retirement benefits scheme”, and

  • “relevant benefits”,

have the same meaning as in Chapter 2 of Part 6 of ITEPA 2003 (see sections 393A and 393B of that Act).