Income and Corporation Taxes Act 1988

[F1632A Eligibility to make contributions.U.K.

(1)The Board shall not approve a personal pension scheme if it permits, in relation to arrangements made by a member in accordance with the scheme, the acceptance of—

(a)contributions by the member, or

(b)contributions by an employer of the member,

at a time when the member is not eligible to make contributions.

(2)The Board shall not approve a personal pension scheme unless it makes provision for ensuring, in relation to any such arrangements, that any contributions accepted at a time when the member is not eligible to make contributions are repaid—

(a)to the member, to the extent of his contributions; and

(b)as to the remainder, to his employer.

(3)The following provisions of this section, and the provisions of section 632B, have effect for determining for the purposes of subsections (1) and (2) above the times at which a member is eligible to make contributions (and, for those purposes, a member is not eligible to make contributions at any other time).

(4)A member is eligible to make contributions at any time during a year of assessment for which he has actual net relevant earnings.

(5)A member who does not have actual net relevant earnings for a year of assessment (“the relevant year”) is eligible to make contributions at any time during that year if—

(a)for at least some part of the year he does not hold an office or employment to which section 645 applies; and

(b)the condition in any of subsections (6) to (9) below is satisfied.

(6)Condition A is that at some time in the relevant year the member is resident and ordinarily resident in the United Kingdom.

(7)Condition B is that the member—

(a)at some time during the five years of assessment preceding the relevant year, has been resident and ordinarily resident in the United Kingdom; and

(b)was resident and ordinarily resident in the United Kingdom when he made the personal pension arrangements in question.

(8)Condition C is that at some time in the relevant year the member is a person who performs duties which, by virtue of section 132(4)(a), are treated as being performed in the United Kingdom.

(9)Condition D is that at some time in the relevant year the member is the spouse [F2or civil partner] of a person who performs such duties as are mentioned in subsection (8) above.]

Textual Amendments