Employer contributions to registered pension schemes

Produced by Tolley in association with

Employment Tax

Guidance

Introduction

For many years, the UK has operated a system which encourages private pension provision through a system of tax reliefs.

The operation of the taxation system associated with pensions was radically reformed in FA 2004, Pt 4, which effectively disposed of a complex system that had developed since the last occasion of radical reform in 1970. This new basis was introduced with effect from 6 April 2006 through the provisions contained in FA 2004.

The rules of any registered pension scheme will specify who can join it. There are no HMRC restrictions on who is allowed to join a specific scheme, even non-UK residents may join a registered pension scheme if the scheme rules permit.

Contributions may be paid by the scheme member, a third party on behalf of the member, or a member’s employer or former employer. Where a third party pays a contribution, those contributions are treated as if they had been paid by the member, ie they count towards the member’s annual allowance.

Pensions taxation lifecycle

The

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David Everett

Partner, Lane Clark & Peacock , Employment Tax

David Everett, is the head of the Pensions Research team at LCP. One of his key roles is to analyse and communicate regulatory and professional developments to audiences both within and outside LCP.David has built up many years of experience in the occupational pensions regulatory field covering a broad spectrum including government policy and legislation, particularly that emanating from the Department for Work and Pensions, the Pensions Regulator, the Pension Protection Fund and other compensation schemes, the Pensions Ombudsman and the Courts and the technical and ethical regulation of actuaries through the Financial Reporting Council and the Institute and Faculty of Actuaries respectively.He also assists the ACA in responding to government consultations.He's the editor of LCP's weekly Pensions Bulletin and undertakes other technical writing for the firm, as well as contributing to TolleyGuidance Employment taxes for the Pensions module.

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